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internet marketing

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Internet Marketing (MKT 325)

Internet marketing

Assignment 1


Subject code: MKT325

Lecturer: Vicky Smith

Student name: RenJie ZHU

Student number: csu11359706

Due Date: 10 January 2007


New technology is rapidly developing in the 21st century. The internet becomes more and more prevalence not only for the household, but also an essential commercial informational transaction media. So internet marketing is exploited as new marketing modality which should rely on the internet to execute its function. In the essay, it will mainly introduce and evaluate the differences between online and offline marketing. For this purpose, it should analyse from the hypostasis modality, unique characteristics of the internet marketing, and which similarities still exist in the online marketing by comparing with the traditional market. Furthermore, the kinds of way online marketing use to build and maintain the relationship with the customers and complete the trading process.  

Body of essay

Internet marketing is the process of building and maintaining customer relationship through online activities to facilitate the exchange of ideas, products and services that satisfy the goals of both parties. (Mohammed 2004, p4)

Building a long term relationship with customers is not a simple process; it will experience a lot of procedures and make use of approaches to gain customer’s faith to purchase your company’s products or services. Firstly, it should make them a feeling of confidence and security when customer is visiting company’s website, the website’s information must be correct and consistent; then create some entertainment or informational value for customers and supply some philanthropic activities, e.g. charity. For those purpose, it had better to employ a good customer relationship manager to be in charge of this area. During the exchange process, delivery on time and quality guarantee will also affect customer’s attitude and loyalty of the company.  Customer survey and immediately feedback will start up after sales, it is very important to understand the degree of their satisfaction. If it may be relatively grievous, appropriate improvement procedure must implement immediately.

In the operation system, a correct marketing strategy will conduct company to be profitable. There are four concepts of them, firstly is the segmentation, it also divided in into Actionable which is easy to identify and reach, it can be described in terms of growth, size, profile and attractiveness, and Meaningful which should explain behaviour or likely behaviour; those in the segment should be sufficiently unique; and it should correspond to when customers buy and how they buy. The requirement of successful segmentation is large enough to warrant cost. The variables used for segmentation include geographic, demographic, psychographic and behavioural. The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritise the groups to address; to understand their behaviour; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment (Steenkamp and Ter Hofstede, 2002). Secondly is targeting, the decisions involved in targeting strategy include which segments to target, how many products to offer and which product to offer in which segments. Thirdly is positioning, company should try to create an image or identity in the minds of their target market for its product, brand, or organisation. Lastly is the marketing mix, company’s marketer must decide where to distribute the product, how much selling price is appropriate for customer, how many products should be produced to satisfy market needs and what kinds of website can attract customers.  

Actually, there is not too much difference between internet market and traditional market. At initial stage of the business, online marketer will do the same procedures as the traditional marketer, such as analysis of the market, planning of marketing strategy, implementation of strategy and controlling of sales performance. And it also should segment, target customer and do positioning then analyse the place, distribution, price and products those marketing mix factors. It still can use the similar marketing plan and strategy for online business, just as with an offline business. And the vast majority of the marketing plan will be exactly the same; the details will just deal with an online market and strategies rather than offline. It still needs to research company’s competitors, tell what company’s strengths and weaknesses are, describe products/services, explain how plan to attract customers/clients/visitors, etc. Anyway, neither online nor offline marketing is for the purpose of selling the goods or service to the customers and meet their satisfaction, so that the customer relationship management is still necessary for gaining loyalty customers.

However, there are many unique characteristics of online marketing by contrasting with traditional market. As we known, internet contains huge information, and it is convenience to access and updating immediately for company’s website, it still cost a little to build and maintain. Traditional market usually cost a lot of money to promote and create awareness of its products or service, TV, radio ads and billboard which is the best choice for traditional marketer, but they will limit for time, money and location. Furthermore, customer can learn about the product as visiting website of company freely without the sales force. If they experienced valuable feeling, they will recommend to others to help company to expand the market. There is no geographic restriction for internet, so it is very good opportunity for company expand from domestic market to international market, company do not need to spend too much time and money on promotion, just focus on online promotion plan. At the same time the interactivity between companies to customer or customer to customer is permitted on the company’s website, chat rooms, FAQ and emailing feedback is the form of communication between each parties. Each customer will experience individual treatment, company will be guarantee which is no reveal for customer detail, ensure their privacy concerns and security payment.

Australian airway company Qantas is do successful selling in both online and offline market. In the its homepage, there is ticket booking region for people want to inquire the price, flight time and duration at any time, and also it can be purchased after decision-made. There is incidental service for people want to have after flight, such as hotel booking, car rentals and traveling package. For Qantas loyalty customer, it will provide for membership card called Frequent Flyer, people can earn award point after every traveling. More points you earn, it will reward more, like one night free hotel room or upgrade your flight class. Every member can log on their own account at Qantas homepage to manage their online booking and contact with the company. At Specials region, Qantas will provide several special holiday plans for visitors to consider. To do Email Subscription will let customers easily to know latest specials by just checking personal email. Qantas club is the place will help people know more about the benefit of the membership, it will attract people to join especially for the business traveler, because they are usually the variety of frequent traveler. They also properly do not have time to go to the travel agency for booking the ticket, but if they do all those things online, they may just save a lot of time and reduce the opportunity cost, that’s the traditional market cannot do.


As a burgeoning market, internet market still has many risk and challenge in that field. There may be not securing for credit payment, the damage and lost of delivery goods and people’s mistrust. But it still will be consummate in the future as people more and more reliable for the internet. Recently more and more small medium enterprise companies switch their company strategy to online market, because there is less market share they can get in the traditional market. So it is better to integrate the online and offline selling to expand market as taken each side of advantage. Whatever the customer from online or offline market, company must exploit different levers to strengthen the relationship with them.


Mary L Roberts, 2002, Internet Marketing: Integrating Online and Offline Strategies, McGraw-Hill/Irwin

Kotler P, Adam S, Brown L, Armstrong G, 2003, Principals of Marketing, Prentice Hall

Malala, J. N. 2003, The Relationship between Computer Literacy, Online Marketing, and B2B Electronic Commerce. Business Research Yearbook    

Chaudhury, Abijit; Jean-Pierre Kuilboer, 2002, E-Business and e-Commerce Infrastructure, McGraw-Hill  

Ward Hanson, 1999, Principles of Internet Marketing, South-Western College Pub.

Dann,S & Dann, S, 2004, Strategic Internet Marketing 2.0, Wiley.

RenJie ZHU                8/04/2008        

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