In the contemporary world, the shape of marketing has changed, a successful company does not only depend on world-of-mouth and convictive advertisement any more. For a company, internet marketing plays a significant role in obtaining real achievement among the competitive environment. Because customers have been online, it is the right step to deliver companies’ information to the customers by internet now.There are several advantages of internet marketing. Firstly there are more enquiries in internet marketing; therefore it will lead to more sales. Secondly internet marketing can maximize the potential of company website, which will result in more flexible ability of company. Thirdly comparing to expensive publication and advertisement, internet marketing cuts operational and marketing cost in other areas such as phone call enquiries...etc. Lastly business can be expanded to the world and this means a larger market, and then it will have possibilities of other business opportunities such as Internet Business.
Amazon is the most successful company in internet marketing recently. It was found in 1995 as a small internet book shop. However nowadays Amazon is an internet empire, besides books, the products include movies, music, software, handbags and so on. In terms of the book sales, Amazon bookstore (amazon.com) is the world's biggest bookstore. It can provide 310 million books catalogues, which is 15 times more than any bookstores in the world. But it needs neither huge buildings nor lots of staff. There are only 1,600 employees in Amazon bookstore, however, their average turnover is 37.5 million dollars per person per year, 3 times more than the largest global book company (Bames & Noble) which employs 27,000 employees .All in this realization, e-commerce is the fundamental factor.Despite of the importance of e-commerce in successful achievement, marketing research plays a significant role in internet marketing. Because marketing research must be the first step for any type of marketing, which provides theory basis for strategic planning and decision making for company. In many famous international companies, marketing research budget generally accounts for around 3% of enterprise sales, which indicates that marketing research is indispensable. What is more, in Amazon this percentage is up to 14%. This evidence shows that marketing research is a fundamental part in internet marketing. Nowadays internet market is considered as the largest market in the world, which is also the most complicated, changeable and competitive one. In terms of price, for instance, the average price of a Nike shoes is 20 pounds in internet market, shop A prices it 25 pounds without marketing research, shop B goes to compare website to do research and then prices it 19 pounds. In this case, it is obviously that shop A loses the competitiveness.
To sum up, internet marketing plays a significant role in today's digital world. And it is absolute necessary to consider internet marketing in my company if we want to survive and be sucessful in competitions. What is more, it is fundamental to consider the importance of marketing research in internet marketing.
Reference
www.amazon.com
Do you think It is important to know how use internet tools (research motors, Networks...), to manage a good research and a good E-marketing strategy?
ReplyDeleteIs Amazon a SME? If they employ 1600 people I don't think they still belong to the group of SMEs.
ReplyDeleteReference: European Commission of Enterprise & Industry, SMEs, Facts and figures about the EU's Small and Medium Enterprise (SME).
Thanks for your comments.Firstly, I do agree that how to use internet tools in marketing research is very important nowadays, because it has several benefits. For example, it could saving time , get large sample size and so on. However, it is better to combinate with normal marketing research. In my oppion, to some extents face-to -face interview is important. Secondly, I believe that Amazon is is a SME. It is not comment that one person can operate this large company. Although internet is a intelligent tool, the power of outcome depends on the person who operate it. It is incredible to image machine control Amazon. So in my oppion, it doesn't mind that how many staff Amazon employs, the importance is the way Amazon operates-using internet to sell its products.
ReplyDeleteI disagree as well that Amazon can be mentioned as SME nowadays, it is just too big and a global brand with adequate financial resourses which is unusual for the SME`s. But from other hand in 1995 it was a SME and this example can stimulate the entrepreneur in everybody of us.
ReplyDeleteThe benefits of e-marketing were highlighted however there was no direct connection between market research and the impact it has on SMEs. Also the first paragraph of the article mentioned, that successful companies do not rely on word-of-mouth advertising anymore, and went on to insinuate that internet marketing was more important than WoM communication. Can you please expand on that point? As Fill (2009) wrote successful communication is characterised by interaction and that WoM communication enriched the communication process. Also remember that opinion leaders, formers and followers are key to a company’s success and are integral part of word-of-mouth communications.
ReplyDeleteFill, C (2009). Marketing Communications: Interactivity, Communities and Content. 5th Edn. Harlow, Prentice Hall p51 – 52.
Amazon was found as a small internet book shop,it belonged to SMES.The most important point is how it can develop whith marvellous speed to a large corporation. I believe internet marketing plays a significant role in this process.Thus this is why I consider Amazon as an example.At the monment our company is a small company, but we hope it can be a large company in the future by internet marketing.
ReplyDelete