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Effects of Online Marketing

Effects of Online Marketing


  • Introduction
  • History
  • Merits/Demerits
  • Statement of Problem
  • Review of Literature
  • Methodology
  • Findings
  • Introduction

Ever since folks have something to market, they have used various methods and techniques to market their products to be able to increase their sales.

Various methods to market products have been developed on the centuries. Improvement in technology, especially the advantages of internet has allowed the common man to gain access to information easily within the comfort of their homes at very low costs and minimum amount efforts.

This has been identified as an excellent opportunity by various multinationals as well as home organisations to make people aware about their services and find potential consumers at an extremely efficient and affordable method known as INTERNET MARKETING.


The procedure for online marketing started in the first 1990's because the intro of internet. Bristol-Myers, a U. S. based medication company was the first to company to market on the internet. The business used the internet to publicized for a medicine called "Excedrin to develop public consciousness.

According to a famous business papers the utilization of World Wide Web (WWW) in promoting Excedrin resulted in a very good response from the consumers. The business Bristol-Myers had recorded 30, 000 consumers in their online consumers list.

Seeing the response given by the consumers to the advertisement distributed by Bristol-Myers, major software companies of this time like Microsoft and IBM began to invest huge amount of money on online marketing.

The website called Yahoo was the first to acquire high amounts of earnings from online marketing. It had been main websites showing never before seen online adverts.

The expenditures incurred by various firms in the U. S. , Canada and other neighbouring countries totalled to roughly 300 billion dollars by 1996.

The online marketing began to grow when the number of internet surfers and home based businessmen or business owners continued to increase in America through the mid 1990's.

In 1997, the online marketing industry's budget acquired already rose 1 billion dollars.

With the increasing use and ease of access of internet in cities and rural areas likewise, the importance of online marketing is little by little increasing and it is now considered by many corporates as the main source of ad and companies have began to invest most of their funds into online marketing and e-commerce advertising of products.

Statement of problem-

Why are people not attracted to online marketing?

Future of online marketing

Misuse of online marketing


Irritating and wastage of people's time

False advertisements

Fear of hackers on the internet

Bad quality of products with deceptive information

No some may be accountable as there is absolutely no sense of personal participation by the companies


Reduction in costs and easy to place

Easy option of full line of products

More data can be assessed and collected

Faster respond to the marketer by the finish user

Universal accessibility through global website


Security and privacy problems exist

Poor reach in rural areas

Inability to identify the customer's characteristics

Maintenance costs due to swiftly changing technology

Review of Literature

Prior work

The paper is based on the current body of knowledge in the field of Internet marketing by analysing the annals and opportunity of the topic.


Online Marketing, Organisations, Internet Marketing, E-Mail Marketing, SOCIAL MEDIA MARKETING, Mobile Marketing, E-Commerce, Literature Review


This paper will enhance the body of knowledge by investigating the printed work in neuro-scientific Online Marketing. Based on this review, research workers and scholars in the field of INTERNET MARKETING can have a clearer potential while studying this subject matter and donate to the ongoing research going upon this topic


This study will help the policy creators, entrepreneurs, experts, and educators by providing a clearer view and deeper understanding for all the issues related to the field of Online Marketing


It includes many areas such as E-business, E-Commerce websites, Electronic Business, Electronic systems, Mobile marketing.


The data will be gathered and analysed through questionnaires that may contain 10 questions each.

The market situations and viewpoints of major companies that have committed to the field of Online Marketing will be studied into consideration.

Further the near future prospects and innovations in neuro-scientific online marketing will be considered.

Growth and Development

In the past days, when regular content was used online, any hyperlink from one website to other could be considered as a promotion for the other website. Officially, Internet promotion were only available in 1994, when the first economically available browser, Netscape Navigator 1. 0, was open to the general public the first ever banner advertising were sold. Since then, the web Marketing industry has encountered many problems in protecting a strong hold in today's market. The enlargement in marketing costs was led by an increasing number of company's raging expansion of advertising imitations. Internet search engine skills created the highest level of excitement.

Online promoters are beginning to request more powerful promotion models that better record and withstand end user care, like the appearance of real digital audio/visible future the standard-setting fluency of TV commercials. With online demographics becoming more numerous and concentrating on becoming more descriptive, advertiser expenditure on the net relocated out of its new stage through the past years.


-Let general population know they exist:

Advertise if people don't know where they are simply and what they do, they can't buy from them. Advertising significantly increases their probability of accomplishment.

-Don't shock your client:

Make your client feel contented with the items or provision. Offer an atmosphere that they can feel secure in. Make them feel great about spending their money. Don't frighten the buyer.

-Look the part:

They should efficiently display their capability to charm new consumers. They are able to do the same when they look the fragment.

Promotion Cost

Getting their note out costs cash, they have to spend money to make cash. But if they intend to promote their online business, it also compensates to learn their selections before they spend cash to generate income online. This is a basic reality of business. INTERNET MARKETING is the main one tool that they can practice to draw in new consumers with a tight budget. Targeted e-mail operations, banner advertising and newsletters can all be extremely effective ways to catch the attention of fresh consumers. The key though is not in using them, but in using them correctly.

Give people reasons to buy online:

Good advertising techniques are pointless without a powerful message. A highly effective message provides people reasons to invest their money with the business. An effective message appeals to new consumers.

Strategies to Enhance Online Marketing

To help him start offering online, and help him obtain the most from other advertising money, I researched some of the popular ways to advertise by soliciting the advice of advertising experts. Here's what we found out about the following advertising options.

1) Web directories & Search Engines

If they own a gas train station, or restaurant near an famous visitor place, they might probably advertise over a billboard over the highway to warn motorists that their business is in advance and prepared to look after their requirements. In the same way, if they intend to advertise on the information superhighway, an evident place to do so reaches high-traffic areas where they'll hold the largest possible audience. The primary search engines are google and bing and provide services of online advertising campaign. This will provide more hits or clicks and catch the attention of increasingly more consumers.

Organisation such as yahoo has generated adwords which is an inexpensive service which suggests the customer to go through the paid link as advertised by the business. The company can choose to market their product internationally or locally and google and yahoo helps companies that have recently became a member of online marketing to set up and catch the attention of potential consumers.

Companies only have to pay for variety of clicks on the site.

2) Web Sites

As we mentioned previously, it's not essential that they have an internet site if they advertise on the web. If they're enthusiastic about their product or services, many consumers will be satisfied reaching them over the telephone. But if indeed they choose to have a site, they must have the energy to take care of questions and orders that should come to online.

An advertising expert can help they determine which parts of the site have to be updated, and exactly how frequently, and which can continue to be static. A company can also write press releases, News articles, and new product announcements which should appear on their site.

A website is also important since it helps an organization to establish credibility as a company.

Easy usage of information, with a website, consumers can certainly access information about your business. They can see what products or services you sell, your prices, where you are plus much more. Whatever you decide to tell them, they can find it with a few clicks of any mouse.

Once an online site was created, you can keep it up-to-date to be highly relevant to your business and encourage more visitors (and potential sales).

Having an online site for your business is not only an advantage; it's an important way to safeguard your business brand online. Stake your business case on the internet or someone else will! There's a risk that if you don't have an enterprise website and secure a site name relevant to your business then someone else can do it for you. The function of Cybersquatting is currently less prevalent since the introduction new laws to fight it, but there continues to be a threat of someone innocently taking your selected domain name. Others with a gripe against your business might use a website or social media accounts to damage your business reputation. Getting there first will allow you to protect and secure your business brand online.


Reliability-The home elevators your website might be unreliable if not kept up to date frequently. You need to ensure that changes are created when necessary and also have a disclaimer with regards to the reliability of the information covered within.

Crashes & Uptime- A web site that crashes is not any good to anyone. That is a serious disadvantage for a company. When your website is constantly crashing or unavailable then people will never be able to find information about your business therefore you could lose out on potential sales. An unreliable connection could also signify a plummet in a websites search engine results positioning.

Difficultly Reaching the right people- Due to the type of the internet and the sheer number of businesses already on the World Wide Web, you might find it difficult to attain the right target audience with your website. Competition within your market may be strong and the battle for the illusive No. 1 spot on Google maybe a difficult one, against a wealth of other businesses in your sector. This is not always the case and there are ways around it such as using our Competitor Understanding service to learn the contests secrets and concentrating on "long-tail keyword. While INTERNET SEARCH ENGINE Essentials can assist in improving your rating and put your business on the right footing.

Bad Promotion- Having a website risks getting bad promotion. If a customer is unhappy with your service or products, then they may wish to vent their frustrations online and guide your website in their review/remarks. This could be potentially damaging, harming both your reputation as well as your search engine ranking. Of course, not having a website received't prevent such things happening but it might allow you to monitor and become alert to it. Providing the best possible customer care and learning from your clients opinions is the best possible course of action to combat this problem.

Customer Service-Businesses should remember that an online site should provide information with their clients, but it will not be really the only resource to visit if their are problems. Google depends on its online help center and support discussion boards to handle problems. Facebook users who've problems with the service have to get hold of the business by email. The inability to talk to a person immediately can frustrate users. Additionally, it may leave them being the company has no interest in helping them, and this may cause an enterprise to lose clients.

3) Other Options

Some businesses prefer to use micro sites to do special, one-time special offers that they don't want to tie in to their main site. A micro site is a Web page used for a specific, limited purpose, such as announcing a particular event or offer. There are various ways open to web host a micro site, whether it's done by their business or by an advertising firm. Another option is simply to web page link their Web site to a variety of national online department stores. If they don't possess an web store, they can create one through a number of services. If they want to take their business directly to their consumers, try advertising with thrust technology. Using push technology, programs such as PointCast deliver information automatically to a Web user's hard drive, where they might call it up at his / her convenience. Another trivial option is interstitials, or advertising that "pop-up" over a user's display. They seem between Webpages so they aren't as intrusive as, say, a television set commercial. A number of the other options available to a company are-

Blogs: A Weblog, or blog, is a assortment of brief articles, essays, or loosely-formatted thoughts, usually compiled by one individual. Because the 2004 U. S. presidential election, sites have become popular as both a medium to really get your message away and a car for paid advertising. Sites also encourage reader remarks, making them a very important tool for gathering comments from customers. Companies such as Blogger (www. blogger. com) will hold the companies' blog for free.

Podcasting: Podcasts are audio tracks files recorded in a radio converse show format. By publishing podcasts on your Web site and other sites like Apple's iTunes (www. itunes. com), consumers can sign up to your podcasts, download them when they are available, and then listen to them on their computers or portable MP3 devices.

Email News letters: Registration rates to email news letters that individuals actually value reading can still be high, and unlike other types of banners which may be actively overlooked. If you can have the right contextual advertisement in an email newsletter, not only may people keep it, but they may also go it along to others customers as well. Opposing popular belief, email marketing is definately not over

Facebook Advertisings: These advertising the ability goal people within Facebook based on affinity, area, network and stated interest can simply compete with the best keyword marketing campaigns when it comes to request and reaching those most likely to actually work on the advertising. It allows to hook up the consumer's account to market products of his/her interest.

Current development in Online Marketing

Online advertising expenses are growing speedily and are anticipated to reach $37 billion in the U. S. by 2011. Mobile advertising or advertising sent through mobile devices or multimedia is also growing significantly. Advertisers need to better comprehend different forms, formats, and marketing associated with online and mobile advertising, how such advertising affects consumer behaviour, the different pricing models for such advertising, and how to frame an idea for proficiently allocating their marketing dollars to different online advertising forms, formats and media. In this article, we address these issues. We offer a synopsis of the existing situation with regard to online and mobile advertising. We discuss the rising developments in these areas and offer our view of the future directions.

Online advertising in India

Presently funding sector is most leading sector in online marketing and accounted about 40% of total online advertising in India

The survey believed that the worthiness of Internet Promotion has been double to Rs 450 crore in2007, and will appreciated at Rs 2, 250 crore by the end of 2010, and therefore increasing 10 times from 2006. This implies it'll overtake spends on radio, theatre and outdoor advertising in two years.

The report provides that of the Rs 210 crore was spent on Internet Promotion in 2006, display advertising added Rs 117. 6 crore, grouped was Rs 50. 4 crore and search was Rs 42 crore. It quotes classified advertising to be the key driver of development with a Rs 900 crore contribution (out of the total Rs 2, 250 crore) by 2009, followed by search's Rs 742. 5 crore, and screen advertising bringing in Rs 607. 5 crore.

This is the most optimistic estimation of internet marketing in India made by any research agency. The IAMAI believed in 2006 that Internet Promotion would develop at 40 % and reach a value of Rs 750 crore by 2010. The FICCI-PWC reported in March 2007 that puts the amount at Rs 950 crore. Internet penetration in India is approximated to have grown at an average of 60 % between 2000 and 2006.

Yet, it is difficult to think that online marketers, a unwilling great deal, changes their head enough in 2 yrs to increase their spend by 10.

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