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Internet marketing is the use of the
Internet to advertise and sell goods and services. Internet
Marketing includes pay-per-click advertising, banner
ads, email marketing, Search Engine Optimization (SEO),
blog marketing, and article marketing.
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Internet marketing is a component of
electronic commerce. Internet marketing can include
information management, public relations, customer service,
and sales. Electronic commerce and Internet marketing
have become popular as Internet access is becoming more
widely available and used. Well over 1/3 of consumers
who have Internet access in their homes report using
the Internet to make purchases.
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Internet marketing first began in the
early 1990’s as simple, text-based websites that
offered product information. It then evolved into advertisements
complete with graphics. The most recent step in this
evolution was the creation of complete online businesses
that use the Internet to promote and sell their services
and goods.
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Internet marketing is associated with
several business models. The main models include business-to-business
(B2B) and business-to-consumer (B2C). B2B consists of
companies doing business with each other, whereas B2C
involves selling directly to the end consumer. When
Internet marketing first began, the B2C model was first
to emerge. B2B transactions were more complex and came
about later. A third, less common business model is
people-to-people (P2P), where individuals exchange goods
between themselves. An example of P2P is Napster, which
is built upon individuals sharing files.
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Internet marketing can also be seen in various formats.
One version is name-your-price (e.g. Priceline.com).
With this format, customers are able to state what
price range they wish to spend and then select from
items at that price range. With find-the-best-price
websites (e.g. Hotwire.com), Internet users can search
for the lowest prices on items. A final format is
online auctions (e.g. Ebay.com) where buyers bid on
listed items.
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Some of the benefits associated with Internet marketing
include the availability of information. Consumers
can log onto the Internet and learn about products,
as well as purchase them, at any hour. Companies that
use Internet marketing can also save money because
of a reduced need for a sales force. Overall, Internet
marketing can help expand from a local market to both
national and international marketplaces.
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