Traditional marketing, from a communications standpoint, is primarily a one-way medium. Internet marketing, on the other hand, is a two-way medium. The customer or prospect makes the choice about whether they want to view the material, what parts of the material they want to view, and when they want to view it; furthermore, they have the capability to let you know what they think of it. As such, the content has to be much richer, and more consumer- and benefit-focused than you might find in traditional marketing materials. The Internet demographic is also somewhat different from the market in the offline world. Internet users are, at this time, primarily male, young or young-ish, well-educated, and affluent; however, these demographics are rapidly changing, sometimes so fast the surveys can’t keep up with the actual changes. The trend is toward more women, seniors, and families joining the Internet community. The current changing demographic is something companies need to keep in mind as they make their Internet marketing plans.

The Internet is an inexpensive, yet invaluable tool for researching specific markets, businesses, and industries.

In this case we will discuss how we can conduct marketing research on the Internet using different information sources, which are outlined in chapter 2.

The Internet has shown an entirely new way of carrying out e – commerce, marketing activities, information retrieval and networking and is all the time in development. Everything through from marketing research, product development, distribution, promotion, advertising and selling to customer service and support can now be done on the Internet. All of this have created new ways of targeting and informing customers and a new approach to the marketing mix and has and will lead to a complete different way to compete. This is a lot of companies not prepared to handle.

“One to One marketing”, where marketers can market to the individual’s needs, “value added marketing”, offering something of value such as information, entertainment in return for customer’s attention to the marketing message, and “relationship marketing”, where marketers engage customers in a continuing dialogue which translates into repeat visits to the Web site and customer loyalty, “loyalty marketing”, “retention programs”, “database marketing” are all marketing buzzwords on the Internet used by marketers. According to (Chase 1998) “there are three variables that converge in order for the consumers to feel comfortable and positive about purchasing online: financial incentive, convenience, and added value.” However to succeed with One to One marketing it is vital for every company in the contact with customers to:

“Minimizing uncertainty”Be able “to understand and solve problems”
(Schmidt 1997)

Peter Drucker said that the ultimate purpose of a business was to create customers and keep them. Companies create customers by understanding their needs and satisfying them. One to One marketing simply extends this to satisfying them over and over again in keeping with Druckers philosophy.

According to (Forrest 1999) “getting to know your customers has been increasingly important in an age where the consumer’s every move can be closely monitored.”

Internet has unique attributes, setting it quite apart in many respects from traditional marketing media. “ The Internet allows customers to act on their own initiative and provide a company with relevant feedback. The Internet allows consumers to be pro-active rather than reactive (Iyer 1996). Accordingly corporations need to be prepared to respond to a steady stream of customer input. Mass customization and one-to-one customer service should readily reciprocate the information that customers provide.” (Forrest 1999) The Internet is transactional and can display audio, video and other multimedia elements.

The Internet creates the opportunity to reach a global audience at a fraction of the cost of traditional marketing channels and at the same time it enables organizations to reach a fine-tuned level of market segmentation. The Internet also facilitates customized content, enabling you to offer personalized marketing messages.

Many of the traditional marketing channels are being eroded by Internet and replaced by new models. Distribution channels are becoming shorter and marketers are now faced with communicating directly with customers via the Internet, cutting out distributors.

This “take over” of distribution channels is opening up new responsibilities for marketers. New ways of marketing mean that marketers must familiarize themselves with a new marketing paradigm and learn new skills, identify new opportunities, or get left behind.

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Kunnskapskilden – Internet Marketing Intelligence

Kunnskapskilden – Internet Marketing Intelligence Internet Situational Analysis of 1to1 Marketing/CRM

Research Project: Internet Situational Analysis of 1to1 Marketing/CRM from Jan Vig at Griffith University , Australia i 1999

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Chapter 1

Introduction/overview

Chapter 1.1

Generally

Research Project: Internet Situational Analysis of 1to1 Marketing/CRM from Jan Vig at Griffith University , Australia i 1999/2000

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Internet Situational Analysis of 1to1 Marketing/CRM