The Advantages and Disadvantages of Online Marketing - Essay Example

Communication Presented Assessment RWT1 ID: Mentor: Table of Contents Table of Contents 2 Executive Summary A product manufacturing organization has more responsibility when compared to that of normal business enterprises. The purpose of this report is to describe the online marketing opportunities that are available for retail sales. The advantages and disadvantages of online marketing help an organization to arrive at a decision. Online sales generally yield more profits as people find it easy to shop whenever they want. Online marketing enables the organization to get hold of customers who do not have time to go to a shop. This increases the level of production and sales as people tend to get attracted by the design and display of products in the respective website. Online marketing, one among the effective methods of marketing is implemented by most of the product manufacturing companies. The online marketing will enable the organization to have a better reach and relationship with the customers. Online marketing is advantageous as the customers have the option of ordering products which are currently unavailable. Introduction Online sales have been topping the charts of retail sales. In a business environment, online marketing and sales have become an ideal part. The online marketing opportunities provide a wide range of advantages there by helping the company to improve its reputation and to develop the business at a faster pace. As the reach of online sales is more, people prefer to buy products online rather than visiting the shop personally. A business must also maintain the management strategies in order to increase the business efficiency. This report describes the importance of online sales and the advantages and disadvantages of online marketing. It explains the effects of online marketing and how it helps in the process of business development and growth. I would like to indicate the effects the concept of marketing has on the company. As an employee of the organization, I would take this as an opportunity to suggest the various ways improve the company’s sales. The purpose of this paper is to enable the company to implement strategies that would help them to build a better organization in terms of product manufacturing, marketing and creating a wave among the customers. I would give them several ideas on how to interact with the customers in a better way. The properties of online marketing would also be used to highlight the effect marketing and how they help to improve the company’s relationship with the employees, investors and the customers. Research Findings The research findings help the organization to have a complete outlook of the organization’s operation there by providing an opportunity to help the organization to improve. The company wishes to extend its operations using the internet. The management has made a decision to include their business in the World Wide Web. The effects of online marketing, their advantages and disadvantages must also be analyzed before implementing online marketing. Online Marketing Online marketing is the order of the day since people prefer online purchase when compared to normal shopping. This eases their work as they can select the products they require without much difficulty. When considering a well established and developed organization, the responsibility is more. They need not spend much time and money to promote their products online. The company has to transport their goods to the retail stores and wait till they get back their money. In case of online marketing, the organization will have a direct contact with the customer and this enables them to improve their products in a better way. (Meyerson & Scarborough, 2008). They have a better chance to improve the quality of the products they manufacture. They will have an opportunity to interact with the customers and this helps to know the pulse of the customers. Online transactions involve more responsibility and risk. “Promoting your business or product online, making sure that your website content is useful and up to date. The great thing about online marketing is that you don’t need to have a huge budget to put together a marketing campaign that is effective”. (Lindsay, 2002). Online marketing opportunities are aplenty for retail sales. The reason is the increase in the number of retail stores that operate as a chain of stores that has branches in prominent places of a city. Retail sales are not as easy as marketing a product directly to a customer. But this can be tackled well with the help of proper marketing strategies. Online marketing requires more time and implementation of unique strategies that would improve the sales of the company. Online product promotion must be carried out in an efficient way so that the customers make their purchase online. “As another mode of direct marketing, the Internet has the power and ability to test events activities. Response and measurement provide marketers with the statistical and financial accountability of further champion the electronic cause within the organizations”. (Gay, 2007). The online marketing opportunities are more when compared to the past the company must indulge in serious marketing principles so that the task of online marketing is implemented in a better manner. It is in the hand of the organization to select effective methods to increase the online sales. (Dholakia, 2002). The risk involved in online marketing is more; the transactions must be carried out in a proper way. Even a minor mistake would cost their business to get doomed as the customer would never get back to the same manufacturer. Hence online marketing involves greater risks and mitigating these risks is considered as the first and the foremost criteria of online marketing. Advantages of Online Marketing Online marketing, which is one of the efficient and effective methods of marketing, is widely preferred by most of the product manufacturers. I would suggest the management to go through the advantages of online marketing so that it will help them in implementing online marketing. I have enlisted the major advantages of online marketing. Internet is the most popular and effective medium of communication. This enables the customer to have a thorough knowledge about the product so that he can be sure of the product’s features. Another advantage is that customers need not spend much time on searching for a particular product. “Direct ordering leads to a shortened process chain in which functions can be transferred to customers. The results are considerable time and cost advantages, as manual processing or call centre activities do not apply, meaning higher margins for retailers.” (Heinemann, 2010). Most of these websites include an internal search option which allows the user to search for a particular product. They have to type in the name of the product for which the result will be displayed in few seconds. “It is strictly difficult to calculate the number of the internet users around the world or the number of people who make internet communications at a time. Thousands of people communicate over the internet daily for the first time”. (Fataherji, 2004). The amount of information provided in the internet is more as every detail of a product is listed in the product details section. The information pertaining to the company’s reputation, history and other products can also be viewed. (Ferrell, 2008). Another major advantage is that, the customer can make their purchase at any time of the day. They can make their purchase any day as the retail sales is made 24x7. “Online promotions are immediate-even the simplest sweepstakes instantly confirms that your entry has been received. Consumers who participate in online promotions have come to expect immediate gratification”. (Carmody, 2001). Though there are several advantages, there are certain disadvantages that push the management to a situation where they need to have a second thought on the idea of implementing the online marketing. Disadvantages of Online Marketing Online marketing has certain disadvantages out of which some are considered as serious issues. The company needs to register its online marketing site in the government’s registry. To register in the government’s list of registered online marketing organizations, the company needs to pay a huge amount as the registration fee. The website development also requires a ransom amount. Online sales cannot be achieved overnight. Instead it requires months of patience as the customers may take more time to rely on a particular manufacturer. The website maintenance must also be carried out in an efficient manner, failing which may result in severe losses. Each time a new product is manufactured, the details must be put up on the website. (Grossnickle, 2001). The next aspect is the important part of online sales, site security. The security of the site is the most important aspect. The site must be effective enough to avoid hackers and security threats. Even a minor security attack or threat might create a serious problem to the manufacturer. (Jung, 2007).The payment module should not have any complication or condition and the company must provide a unique shopping code to the regular customers. As online transactions are made with credit or debit cards, the chances of problem are more. If the money is debited and the transaction fails, the customer might act otherwise. As an employee of the organization, I would inform the manager regarding the pros and cons of online marketing. Recommendation Online marketing plays a vital role in marketing the company’s products and increasing the sales eventually. I would suggest the manager to incorporate these changes so that the organization can be sure of improvement and development. I would recommend the organization to expand into online sales as this would help them to reap greater benefits and profits. The organization must incorporate the basic strategies of online marketing so that the company can reach more number of people. Online marketing can be carried out after analyzing the current market position as the needs of the customers keeps changing day by day. The advantages and disadvantages must also be analyzed in order to provide hassle free online marketing and shopping. Conclusion The concept of online marketing has taken a toll on the product manufacturers. The advantages of online marketing make them the most sought after marketing tool. Widening the company’s operations online will fetch them more profit and help them in improving the organization as a whole. The report points out the advantages and disadvantages of online marketing and thus enables the organization to arrive at a better decision. The benefits out beat the negative aspects and thus online marketing would serve the purpose of attracting new customers as well as retaining the old customers. The advantages and disadvantages have been described and the recommendations have been provided. By implementing these recommendations, the company can be sure of Customers will rely on such companies which provide them with better service and the one with good reputation. Reference Gay,R. (2007). Online Marketing: A Customer Led-Approach. New York: Oxford University Press Inc. Meyerson, M., & Scarborough, M. (2008). Mastering Online Marketing. Canada: Entrepreneur Media Inc. Ferrell, O. (2008). Marketing Strategy. U.S.A: Thomson South-Western Inc. Lindsay, S. (2002). Techniques for Online Marketing. U.S.A: Routledge. Carmody, B. (2001). Online Promotions: Winning Strategies and Tactics. U.S.A: John Wiley & Sons. Jung, G. (2007). The Increasing Relevance of Online Marketing. Germany: GRIN-Verlag. Grossnickle, J. (2001). Handbook of Online Marketing Research. U.S.A: McGraw-Hill. Dholakia, N. (2002). Global E-commerce and Online Marketing: Watching the Evolution. U.S.A: Quorum books. Fatayerji, N. (2004). Electronic Marketing: Advantages and Disadvantages. U.S.A: John Wiley & Sons. Heinemann, G. (2010). New Online Marketing: Innovation and Transformation. Netherlands: Gabler Publishers. Research Sources Worksheet A-1 Source Title: Online Marketing: A Customer Led-Approach. B-1Citations: Gay,R. (2007). Online Marketing: A Customer Led-Approach. New York: Oxford University Press Inc. (Gay, 2007). C-1 Annotation Notes: Why is the author credible? Richard Gay is a marketing professional who has enormous experience in the field of Online Marketing. Quote/ Paraphrased Information: “As another mode of direct marketing, the Internet has the power and ability to test events activities. Response and measurement provide marketers with the statistical and financial accountability of further champion the electronic cause within the organizations”. How is it relevant? This information helps to explain the need of online marketing and how internet is useful in simplifying the process of online marketing. A-2 Source Title: Mastering Online Marketing. B-2 Citations: Meyerson, M., & Scarborough, M. (2008). Mastering Online Marketing. Canada: Entrepreneur Media Inc. (Meyerson & Scarborough, 2008). C-2 Annotation Notes: Why is the author credible? Authors Mitch Meyerson is the founder of Guerrilla Marketing Coaching and he has won awards for his contribution to the field of marketing. Mary Eule Scarborough joined him to author this book on online marketing. Quote/Paraphrasing: The company has to transport their goods to the retail stores and wait till they get back their money. In case of online marketing, the organization will have a direct contact with the customer and this enables them to improve their products in a better way. How is it relevant? This information describes the importance of online marketing and the ways in which it proves to be beneficial to the organization. It highlights the way in which it improves the product manufacturing in a company. A-3 Source Title: Marketing Strategy. B-3 Citations: Ferrell, O. (2008). Marketing Strategy. U.S.A: Thomson South-Western Inc. (Ferrell, 2008). C-3: Annotation Notes: Why is the author credible? Author O.C.Ferrell is a popular writer who has written several books on management and marketing. This book got several critical acclaims for his remarkable presentation of online marketing. Quote/Paraphrasing: The amount of information provided in the internet is more as every detail of a product is listed in the product details section. The information pertaining to the company’s reputation, history and other products can also be viewed. How it is relevant? This information indicates the minor aspects of marketing and the ways in which an organization can make the marketing process more effective. A-4 Source Title: Techniques for Online Marketing. B-4 Citations: Lindsay, S. (2002). Techniques for Online Marketing. U.S.A: Routledge. (Lindsay, 2002). C-4: Annotation Notes: Why is the author credible? Author Stephen Lindsay is a professor and a leading writer who has written several articles on marketing strategies and the techniques used in online marketing. Quote/Paraphrasing: Promoting your business or product online, making sure that your website content is useful and up to date. The great thing about online marketing is that you don’t need to have a huge budget to put together a marketing campaign that is effective. How it is relevant? This information explains the difference between online marketing and the normal marketing. The details included in online marketing have also been described. A-5 Source Title: Online Promotions: Winning Strategies and Tactics. B-5 Citations: Carmody, B. (2001). Online Promotions: Winning Strategies and Tactics. U.S.A: John Wiley & Sons. (Carmody, 2001). C-5: Annotation Notes: Why is the author credible? Author Bill Carmody is one among the very few people who have collected more information on online marketing and online product promotions. He is an business executive who has several books to his credit. Quote/Paraphrasing: Online promotions are immediate-even the simplest sweepstakes instantly confirms that your entry has been received. Consumers who participate in online promotions have come to expect immediate gratification. How is it relevant? This information helps to explain the why online marketing takes over normal marketing processes. It also explains how a response is received in the online transactions. A-6 Source Title: The Increasing Relevance of Online Marketing. B-6 Citaitons: Jung, G. (2007). The Increasing Relevance of Online Marketing. Germany: GRIN-Verlag. (Jung, 2007). C-6: Annotation Notes: Why is the author credible? Author Gabriele Jung is a marketing professional who has been in the field of marketing for many years and a notable enthusiast who analyzes the latest changes in the marketing field. Quote/ Paraphrase: The security of the site is the most important aspect. The site must be effective enough to avoid hackers and security threats. Even a minor security attack or threat might create a serious problem to the manufacturer. How is it relevant? This information helps to explain the importance of security in online marketing. It describes the factors that must be considered when implementing the online marketing system. A-7 Source Title: Handbook of Online Marketing Research. B-7: Citations: Grossnickle, J. (2001). Handbook of Online Marketing Research. U.S.A: McGraw-Hill. (Grossnickle, 2001). C-7: Annotation Notes: Why is the author credible? Author Josshua Grossnickle is a professor and a marketing professional who has been in the field of marketing. He has written several books on marketing and its advancements. Quote/Paraphrase: The website maintenance must also be carried out in an efficient manner, failing which may result in severe losses. Each time a new product is manufactured, the details must be put up on the website. How is it relevant? This information explains the need for online marketing and the relevance of website maintenance. A-8 Source Title: Global E-commerce and Online Marketing: Watching the Evolution. B-8 Citations: Dholakia, N. (2002). Global E-commerce and Online Marketing: Watching the Evolution. U.S.A: Quorum books. (Dholakia, 2002). C-8 Annotation Notes: Why is the author credible? Author Nikhilesh Dholakia has authored many books on e-commerce and marketing. He is a marketing professional and one of the popular authors of online marketing. Quote/Paraphrase: As the online marketing opportunities are more when compared to the past, the company must indulge in serious marketing principles so that the task of online marketing is implemented in a better manner. Though the opportunities are more, it is in the hand of the organization to select effective methods to increase the online sales. How is it relevant? This information highlights the increase in the popularity of online marketing. It specifies that online marketing and its success depends on the organization. A-9 Source Title: Electronic Marketing: Advantages and Disadvantages. B-9 Citations: Fatayerji, N. (2004). Electronic Marketing: Advantages and Disadvantages. U.S.A: John Wiley & Sons. (Fatayerji, 2004). C-9 Annotation Notes: Why is the author credible? Author Fatayerji has written several books on online marketing and its uses. He is an active member of marketing association and a professor in the department of management. Quote/Paraphrase: It is strictly difficult to calculate the number of the internet users around the world or the number of people who make internet communications at a time. Thousands of people communicate over the internet daily for the first time. How is it relevant? This information explains the advantages of online marketing over the other methods. It also highlights the increase in the number of people using the internet. A-10 Source Title: New Online Marketing: Innovation and Transformation. B-10 Citations: Heinemann, G. (2010). New Online Marketing: Innovation and Transformation. Netherlands: Gabler Publishers. (Heinemann, 2010). C-10 Annotation Notes: Why is the author credible? Author Gerritt Heinemann is a professor of business at a university in Germany and he is the member of business associations. His wider knowledge about marketing and business management has helped him author several books on marketing. Quote/Paraphrase: The results are considerable time and cost advantages, as manual processing or call centre activities do not apply, meaning higher margins for retailers. How is it relevant? This information explains the benefit of online marketing and the way in which it helps the retailer. Read More