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After today’s Lesson students should be able to explain the importance of the E. Marketing,
benefits of using internet as a tool to reach the customers, and at the same time a tool to do
business in more effective and time saving way.


a. Internet Marketing:

Internet was used for the first time in 1982. It began to expand in 1991 with the World Wide Web.
Internet technologies pose managerial implications to business. Marketers are using internet as very
effective tool of marketing

b. Major Forces Shaping the Digital Age:

Digitalization and Connectivity: The flow of digital information requires connectivity which is best
provided by the Intranets, Extranets, and the Internet. The Internet explosion is the key driver of
the “new economy”. New types of the intermediaries are also playing important role in the shaping of digital age

c. The Role of the Internet in Marketing:

Internet is very important tool in marketing. It is useful for marketers in different ways like:
• It is the fastest growing communication technology.
• Within the first five years, 50 million people were connected.
• Capable of interactively sharing information in real time.
Internet is a new tool to reach consumers initially different tools like telephone, postal services, radio and televisions were used as a source to communicate to consumers but now days along with these tools internet is also being used as a source to reach and to communicate to customers/consumers. Using internet companies can provide their information to customers through websites, search engines can be
used to coordinate the consumers and producers, customers can used the e. mails to connect to the producers. Customers and consumers not only acquire information through internet but also can make online purchases by placing orders to desired producers, it provides convenience and time saving for both Companies can reduce their need of inventory stocks by using the inventory systems. Online banners, ads, website and e-mails can be used as personalized communication tools.

d. Electronic Commerce


The process of conducting business transactions over
electronic networks, mostly the Internet

E-Marketing :

The process of utilizing Information Technology in the conception, distribution, promotion, and pricing of goods, services, and ideas to create exchanges that satisfy individual and organizational objectives


The use of Information Technology in all business tasks including production, marketing, accounting, finance, and human resources management
Basic objective of the marketing is to use of 4 “P’s” to meet customer’s needs. This objective is
best achieved by using E. marketing in Supply Chain Management. Technology can be used to
increase efficiency of marketing and increases company profitability and adds customer value

e. Rules of E-Marketing:

General rules of E. Marketing are:

1. Power Shift from sellers to buyers
2. Increasing Velocity
3. Death of Distance
4. Global reach
5. Time compression
6. Knowledge management is key
7. Market deconstruction
8. Intellectual capital rules

f. Buyer Benefits of E-Commerce

• Convenience
• Easy and private
• Greater product access/selection
• Access to comparative information
• Interactive and immediate

g. Seller Benefits of ECommerce:

• Relationship building
• Reduced costs
• Increased speed and efficiency
• Flexibility
• Global access, global reach

h. Basic-Forms

i. Virtual Business:

There are two types of the electronic commerce one is termed as business to business and second is termed as business to business electronic commerce. As the term indicates business to consumer commerce mean consumer acquires product through electronic commerce for consumption purpose while for business to business
commerce is used to sale the product for further business processes. What ever is the type of commerce it requires connection between the two parties which are buyer and the seller. This connection and the interaction are provided by the virtual communities.
Manufacturers or sellers can use the bulletin boards, chat rooms, newsletters and discussion lists for communication process that can facilitate the exchange process between the buyers and the
sellers. Major source of effectiveness of this system is dependent upon the internet technology that is changed the world into global village.

j. Key Success Factor for Internet Businesses

Success of the internet business depends upon the offer of value and customer driven products
adjusting the prices according to products values, going for specific customers instead of the mass
marketing, distributing the products according to customer’s convenience. Designing the
marketing mix that is 4ps in that way which is beneficent for both customers and producers.

k. Internet Marketing Objectives

As shown in the fig the main objectives of the internet marketing are, to have online market share,
to increase the sales level, make customers to make repeat purchases, market positioning, image
building of the company and creation of awareness regarding the brand of the company this can be
created by using different online promotional tools on internet that include bulletin advertisement,
button advertisement, targeted E. mail etc. By using these tools phenomenon of the digital world is
being created. Basic concept of the phenomenon is to provide the value products to the customers
with speed. Pakistani manufacturers/ producers can use the internet technologies for the development of the businesses.
Some advantages that can be achieved by using internet include:
􀂃 it can be used as a tool to do business
􀂃 increase your customers base
􀂃 increase your efficiency and effectiveness
􀂃 cost effective
􀂃 time saving
􀂃 open new venue
􀂃 Can become the part of global economy through internet marketing

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