The Major Differences Between E-Business and Internet Marketing - Assignment Example

Internet Marketing Q 1 E-commerce (Electronic commerce) describes the interchange of goods and services or transfer of assets or information, over the electrical network, mainly the Internet. It attracts technologies like electronic data interchange, internet advertising, automatic data collection systems, inventory management structures and supply chain (DHOLAKIA, 2002 pp. 135-152). Exchanges are from consumer-to-business, consumer-to-consumer, business-to-consumer or business-business. E-business (electronic business) is the use of informatics and communication machineries in the administration of commercial activities (DHOLAKIA, 2002 pp. 135-152). It emphasis on the use of ICT to facilitate faster transactions that help companies manage the complications of global business environments. It involves improvements in extranets and intranets. Internet marketing, (online marketing) refers to marketing and advertising techniques using the email and web to drive continuous sales through electronic commerce. It includes social media marketing, web marketing and email marketing (CHAFFEY, 2008 pp. 97-121). In addition, Internet marketing (online advertising) becomes effective when combined with other types of advertising like newspapers, television, radio, and magazine. Digital marketing is marketing that uses digital electronic gadgets such as tablets, cell phones, personal computers and smartphones to promote or market goods and services for smooth engagement with shareholders (SIEGEL, 2004 pp. 173-194). Platforms such as e-mail, websites and, and social networks are of importance to digital marketing. Differences E- Commerce only involves the buying and selling of goods using electronic means. It also defines the exchange of properties and amenities or relocation of belongings or information, completed by electrical system, principally the Internet. It fascinates knowledge resembling to automated data interchange, internet promotion, program information assortment systems, catalog administration arrangements and stock series (SIEGEL, 2004 pp. 173-194). E-business involves selling products online while handling other company’s operations offline.It entails the use of informatics and statement mechanisms in the management of trade accomplishments. It prominence on the habit of ICT to enable quicker businesses that assistance companies handle the impediments of international business situations. It encompasses improvements in extranets and intranets. Internet marketing combines the technical and innovative feature of internet plus web-designing, e-mail marketing, blogs, online promotions and search engine optimization. It includes publicizing and advertising techniques using the web to initiate incessant trades through the internet. Furthermore, digital marketing is attaining marketing objectives through electronic communications technology (SIEGEL, 2004 pp. 173-194). Digital electronic appliances such as computers, lab tops, and phone sustain digital marketing. It incorporates websites and emails in its operations. Q 1.2 Clothing and Fashion Trends Clothing stuffs are amid the most sold items on the internet. It’s on the internet that the retailers market, sell and deliver their cloth products (MILETSKY, 2009 pp.153-166). Fashion trends attract continual innovations with new styles frequently flooding the market. The stakeholders must continuously keep to date. Buyers can discover nearly any kind, size, color or vintage of outfit on the planet and retailers can find a place to sell. When selling through the internet, there are a few essentials to possess in mind (MILETSKY, 2009 pp.123-146). Giving information on sizes plus their images is necessary for both the buyer and seller. Also describing the fabric used in making the cloth is essential. The clothing and fashion industry has undergone revolutions. Recently, marketing and advertisements take an online perspective. Often, fashion trends rely on the tastes and preference of particular groups of people. However, it faces microenvironment aspects that have close impacts to the business. They include factors like customers, employees, suppliers, competitors, media, and shareholders (MILETSKY, 2009 pp.123-146). Its macro environment include technological factors that may lead to changes in fashion styles, consumer factors like culture influence fashion styles, legal and political factors like child labor laws and workers’ rights influences its performance. Lastly economic factors like boom and recession impact the trade either positively or negatively. Q1.3 Marketing Strategies for the Product Cloth retailers that trade online should mostly produce product information that is obtainable from the internet that lists product details like pricing, photos, and descriptions. To avail this information to their customers, they feed them in websites and search engines. Secondly, Sending a Press Release is one of the fastest ways a cloth retailer can use to market and sell their products. The press release enables retailers announce new clothes and their other shopping shops. Cloth Retailers can also use online seminars and workshops as avenues for sharing their knowledge to potential customers hence improving their awareness. (SIEGEL, 2004 pp. 173-192) Moreover, Email marketing and newsletters marketing is significant to cloth traders as it keeps them in touch with the customers. Submitting their Site to main search engines is an important strategy for online marketing as it increases link popularity hence increased sales. In addition, marketing achieved by providing maps of locations and hours of operations and online video marketing permits a retailer to spread the reach of their message to a greater audience. (MILETSKY, 2009 153-187) Social Networking blogs like Facebook, myspace enables cloth sellers make advertisements or feature new promotions, and merchandise Retailers can also Offer an Affiliate Program and promotional giveaway like offering contests and coupon codes. (MILETSKY, 2009 pp. 167-179) Sales and Delivery Once a customer has chosen their product, the retailers will inform them on their delivery. Some of the delivery methods are face-to-face delivery, shipment delivery methods and use of aircrafts in cases where the customer is far. Marketing Environment Microenvironments refer to those forces that affect the ability of a company to serve or the individuals or organizations who directly affect the company. Customers, suppliers, competitors, public and market channels are examples. Macro environment describes those factors that do not affect the business immediate surroundings. They include all external factors such as economic forces, demographic force, technological forces, natural forces, social and cultural forces and political forces. Q 2 Search Engine Advertising Search engine advertising (SEM) is an Internet marketing procedure which promotes websites by improving their reflectivity in search engine results pages (SERPs) by advertising and promotion it uses paid advertising and natural search- engine. The Free search engine marketing also known as search engine optimization (SEO) utilizes off-page and on-page approaches to support search engines in understanding the qualified significance of a websites pages. The paid search engine marketing (pay per click (PPC) advertising, are search engines that enable advertisers place their ads. (MILETSKY, 2009 pp.123-146) Search Engine Optimization The Search Engine Optimization is an internet advertising technique which revises website content to attain an advanced position in search engine results pages. The methods affect the visibility of the website in unpaid search results. In general, the more regular a site appears in search results and its rank on the search results in page the more search engine users it will receive. SEO aims variety of search; it improves local search, academic search, video search, and news search. The method helps marketing agencies that aim at increasing their customers plus their sales and turnover (SIEGEL, 2004 pp. 73-89). Paid Search Engine Marketing Paid search engine marketing is an internet marketing technique used by supplier in attaching advertisements or their ads to make them available to their searchers. The marketing engine is not only cheap but also accessible an example of paid search engines is the pay per click or cost per click. The best-paid search engine marketing technique is pay-per-click that is a model used by individuals to lead them to websites and databases.To access this sites and database, the individuals pay a fee (SIEGEL, 2004 pp. 93-109). Pay Per Click Pay per click (PPC) or cost per click, is an internet advertising model for leading traffic to websites, and promoters reimburse the web site proprietor for the click. Pay per click is the quantity spent by advertisers to get their advertisements clicked. PPC advertising model faces the exploitation over click fraud; however, Google and others have employed automated systems to safeguard against abusive clicks by competitors or web developers (SIEGEL, 2004 pp. 113-129). Email Marketing Email marketing is conveyance of commercial messages to current or potential customers by email to enhance business and customer relations. Typically, it includes sending email requesting business, send ads and solicit sales. Email marketing as a marketing tool allows for easier customer retailer communication. Additionally, email marketing improves customer relationships with their suppliers by increasing their loyalty. (SIEGEL, 2004 pp. 133-149) The internet platform makes marketing faster, and it has evidently increased the market coverage for many entrepreneurs Email marketing supports cross-border marketing expanding the market for both consumers and providers. Marketers can quickly learn new trends in the industry because with email marketing business confidentiality is to not frequent due to open access to the product details. (SIEGEL, 2004 pp. 144-156) Q2.2 Music Marketing Via Online Public Relations Lady gaga uses online public relations to communicate with her fans. She communicates with her fans via public relations channels like the YouTube, Facebook pages and twitter to directly communicate with her fans. The various internet marketing techniques have helped her to communicate consistently with her fans enabling her to link with them. Marketing via online public relations aims at informing fans and customers about the product and persuading them to maintain their view of the entertainment industry. (Jones, & Silverstein, 2009 pp. 122-131) Music Marketing Via Digital Media Communities Digital media communities are platforms like twitter, myspace, and Facebook. Music marketing through tweet messages to fans enables lady Gaga receiving personal interaction with her fans. The use of digital videos and digital audios such as mp3 via the Youtube boots lady gaga popularity among her fans (Jones, & Silverstein, 2009 pp. 142-162). Web pages and sites made it easier for Gaga to write on them, therefore, conveying information to her fans. Advertising through television can improve sales in entertainment industries. Q 3.1 Samsung Consumer Electronics Consumer electronics industry manufactures electronic video and audio equipment for home entertainment, public address and musical appliances amplifications (Jones, & Silverstein, 2009 pp 133-167). Examples of products include jukeboxes, amplifiers for musical instruments, public address systems TVs, stereo equipment, consumer video cameras and speaker systems. The industry is extremely competitive and is consistently subjective to technological developments and innovations, which affect its market size, market share, trends, its customers’ expectations, sales channels and other emerging markets. Consumer Electronics Market Size and Share In the last decade, the market size and market share of consumer electronics had rapidly increased. Transparent electronics is a technology that produces invisible electronic circuits’ and optoelectronic devices. Its market has rapidly increased due to significant innovations that give ample opportunities for new entrants to the market (Jones, & Silverstein, 2009 pp 132-157). Owing to these advancements, its demand continues to expand in developed region to Europe, United States of America. Higher markets for electronics expected in Asia and pacific region due to high internet connectivity in those region and their high disposable incomes. However, demand for industry products in developing economies like Africa due to a lack of the cheap option. In the near future the market size and share of consumer electronic expected to rise in these third world countries. Sales Trends The emergence of flexible electronics market that emphases on numerous element segments such as; flexible display, flexible memory, flexible sensor and flexible battery are the recent trends in the electronic market. In the near future printed memory component is anticipated to develop. Famous names in the consumer industries have substantially invested in R&D technologies. R&D have aided in reducing the overall costs involve in manufacturing, therefore, enabling the technologies to come into the market. In 2010, the leading companies introduced LED and 3D technologies, which dominated the consumer electronic market. (Jones, & Silverstein, 2009 pp. 89-101) Customer expectations Customers will have a number of expectations from the business. They anticipate that the enterprise will be able to convey quality goods in the right quantity as per what it promised to provide. Clients will also expect that the business will carry out its day to day practices in a fair and reasonable manner with no prejudices. The trends in the industry mostly affected the television segment satisfying consumer needs and expectations hence improving their living standards and their well-being. The principal competitors in the market are Panasonic Corporation, Philips Electronics, Sony Corporation, Apple Inc. and Toshiba among others. Emerging Markets Emerging markets present a massive growth chance for sales. Majority of emerging market nations characterized by high rural populations with agrarian-based economies offer more opportunities for sale. Emerging markets for Samsung include India, Africa, china, and Russia. For instance in India, most people lived in rural areas. To deliver service and goods into this market presents both exceptional challenges and huge chances for Samsung consumer electronics. These markets have poor infrastructure and the population have low income. For Samsung to explore into the markets, it has to put up tactics that will lead to successful delivery of electronics. Sales Channels To increase its volume of sales, Samsung Company must use sales channels that best serve its customers in the emerging markets. Direct sales are the simplest, here; the consumer buys directly from Samsung (SHEEHAN, 2010 pp 123-146). In addition to direct sale, it can use indirect channels that involve several intermediaries like value-added resellers (VARs), wholesalers, retailers and distributors. The managed service providers (MSPs); systems integrators (SIs), original equipment manufacturers (OEMs) and consultants are also relevant. Q3.2 Research to analyze the number of Samsung electronics consumers and the channels they use to get information. Quantitative data collection techniques used to obtain the data. Buying channel number % Friend’s recommendation 910 30 Dealer’s recommendation 869 20 Website introduction 377 15 Company’s purchase 270 5 Old consumers of Samsung 168 4 Advertisements in shops 64 2 Advertisements in magazines or newspapers 1055 31 Not sure 595 2 The table shows evidence that most customers get info from magazines and newspapers Questionnaire 1. What is your Age? 18-30 31-40 41-50 Above 50 2. Which Gender do you belong? Male Female 3. Have you ever bought electronics from Samsung? Yes No 4. Where do you get news on Samsung consumer electronics? Friends’ recommendations Magazines and newspapers Internet Q3.3 Benefits of digital tools for relationship marketing management Customer loyalty achieved by Email marketing helps in keeping in touch with clients. Customer loyalty is all about drawing the right customer and getting them to buy. It also entails making them buy often, buy in higher quantities or bring you more customers. Digital tools lower the overall cost of advertising (CHAFFEY, 2008 pp 98-123). It makes advertising cheap by allowing sellers to post advertisements. Secure market targeting becomes easier by internet tools; a producer can easily choose their target groups. In addition, electronic customer relationship is achievable through internet tools since a customer can directly deal with producers. Q4.1 Internet Marketing Plan SWOT Analysis Strengths Samsung Company has been able to manufacture its products at low production costs. Secondly, it can market their brands both in locally and in international markets. It has also put pressure on environmental conservation measures (CAMUSIO, 2011 pp 201-221). It has succeeded in producing excellent hardware parts and consumer electronics. Furthermore, it has the largest share in mobile phones and smartphones integrated with many open operating systems and software. Lastly, Samsung has added the innovations in technology. Weakness Despite its success, it has experienced some problems with having a very little profit margin. It also focuses on too many products instead of concentrating on particular products. Competition from another large buyer makes it inefficient (MILETSKY, 2009 pp 187-203). Cases of patent infringements persist in the industry. Moreover, Samsung lacks its operating system and software. Opportunities Samsung has a large market opportunity of venturing into the growing Indian smartphone market. Its mobile advertising plus the increasing demand for quality application processors present more market chances. The emergence of tablets and obtaining licenses by acquisitions makes it more favorable. Threats The industry faces numerous threats from the saturated smartphone market in developed economies and the rapid technological changes. In addition, it has its patents breached; faces price wars from competitors and the launch of Apple’s I TV increase its risks. Competitor’s Analysis Increased Rivalry among Competitors Competition between brands in the laptop industry has increased making the situation very complicated. Samsung brands face competition from American and Japanese brands; however among the three Samsung products have the best performance in terms of brand recognition (THOMAS, 2011 pp 154-198). In addition, competition between services makes products similar in order to get more customers. Consequently, Samsung Company has to invest more in improving service quality by offering long warranty periods, free customer care services and longer serving hour per day. Competition in distribution channels adds up to the increased rivalry of consumer electronics. Threats of New Potential Entrants and Close Substitutes Samsung Company outsources its consumer electronics and focuses on distribution channel and marketing management hence risks from potential competitors exist. Entrants will also outsource and try to move up their value chain to establish their brands (THOMAS, 2011 pp 124-136). Asus as a rival sell their brands and is the outsourced maker for SONY. In addition, Intel helps local brands to grow by allowing them to use their technologies hence controlling their bargaining power. Bargaining Power of Customers Customers have many varieties of electronics to choose. They can decide to choose their products from different companies because of the differences in their taste and preferences. They tend to pick favorite products with low prices (THOMAS, 2011 pp 103-134). Most buyers obtain product information and their prices online, which enable them to post their purchasing experiences. Furthermore, companies that put emphasis on establishing long-term relationship with their customers intensify the competition. Bargaining Power of Sellers Suppliers of major consumer electronics bring in fierce completion for Samsung. Intel is a monopolized company and a leading producer of most electronics (THOMAS, 2011 pp 145-187). Therefore, other companies including Samsung must develop products that are compatible with those of Intel. Due to higher bargaining power of Intel, it can charge higher prices for its products than what others would charge. Consumer and Channel Analysis Friends showing that it has good reputations among its customers connect most clients to Samsung. Other channels to reach customers include advertisements in magazines and newspapers, dealers who sell Samsung products, websites and databases containing its information, old consumers of Samsung products and other channels. Environmental Analysis Under environmental analysis, the economic dimension is critical for the industry to venture into new market segments in developing nations. The ongoing global crisis has mostly affected the purchasing power of customers in developed economies (BAILEY, 2011 pp 123-156). To avoid loss, Samsung has aggressively ventured into emerging market. Social cultural practices study shows that Samsung has had to operate locally since it works in a Korean environment where its niche influence is by the different lifestyles. The social slot is fundamental given that cultures differ in each country; it has had to restructure itself in each market accordingly. Samsung is one of the leading innovative companies (BURKE, 2008 pp 234-245). It has a mission to lead in the technology hub and be the first to arrive at the market with latest products. Legally the company has faced penalties slowing it. The rise of the ethical consumers who aspire their brands making to be in a socially and environmental friendly way makes Samsung aware of employees ethics in terms of better wages and proper working conditions. 4.2 Online Pay Per click Bibliography BURKE, L. (2008). Niche Internet Marketing! The secrets to exploiting untapped niche markets and unleashing a tsunami of cash while you kick back and relax. [Hawthorn, Vic.], Leigh Burke BAILEY, M. (2011). Internet Marketing An Hour A Day. Indianapolis, Ind, Wiley Pub. http://www.books24x7.com/marc.asp?bookid=41073. BAVERSTOCK, A. (2008). How to Market Books: the essential guide to maximizing profit and exploiting all channels to market. London, Kogan Page Ltd CHAFFEY, D. (2008). Internet Marketing: Strategy, Implementation, and Practice. Harlow [u.a.], Prentice Hall. CAMUSIO, Z. (2011). The Internet Marketing Bible. S.l, Zeke Camusio] DHOLAKIA, N. (2002). Global E-Commerce And Online Marketing: watching the evolution. Westport, Conn, Quorum Books. GINTY, M., VACCARELLO, L., & LEAKE, W. (2012). Complete B2B Online Marketing. Hoboken, N.J., J. Wiley & Sons. http://www.123library.org/book_details/?id=53548. Jones, S. K., & Silverstein, B. (2009). Business-To-Business Internet Marketing: Seven Proven Strategies for Increasing Profits Through Internet Direct Marketing. Gulf Breeze, Fl, Maximum Press. MILETSKY, J. I. (2009). Principles Of Internet Marketing: new tools and methods for Web developers. Boston, Mass, Cengage Course Technology. SHEEHAN, B. (2010). Online Marketing. Lausanne, AVA Academia. SIEGEL, C. (2004). Internet Marketing: foundations and applications. Boston, Mass. [u.a.], Houghton Mifflin TODARO, M. (2007). Internet Marketing Methods Revealed: the complete guide to becoming an Internet marketing expert. Ocala, Fla, Atlantic Pub THOMAS, L. (2011). Online Marketing. Maidenhead, McGraw-Hill Professional. https://www.dawsonera.com/guard/protected/dawson.jsp?name=https://athensla.uwe.ac.uk/oala/metadata&dest=http://www.dawsonera.com/depp/reader/protected/external/AbstractView/S9780071750394. Read More