Internet marketing differs from conventional marketing communications because of the digital medium used for communications. The following characterise this digital medium:

It is interactive

Because the customer initiates contact and is actively looking for information, the marketer will have his undivided attention during his visit to the company website. The specific requirements of the customer can be recorded and taken into account in future corresponding. In contrast, traditional media are predominantly push media where the marketing message is broadcast from company to customer, and company messages may be completely drowned with other promotional noise.

It is intelligent

The internet is a great source of market information. It can be used for marketing research to record customer perceptions of products/services. A company website can be used to collect information about specific customer preferences and requirements, thus aiding the company in building long-term customer relationships. It can also be used to create two-way feedback based on the information gathered.

It opens new markets

Electronic media provides opportunities for a company to promote its products to potential new markets in foreign countries. Although some products/services would require a local sales or customer service force, the internet makes it easier to sell directly to customers in foreign countries without these services.

The Benefits of web-based marketing are summarized as:

Reducing costs

Not only does the internet reduce the need for personel to handle sales and marketing enquiries, but it also reduces the amount of printing and distribution on marketing communication material.

 

Innovation

The internet presents fresh opportunities for new products and/or markets.

 

Advantage over competitors

If the entrepreneur is able to introduce new innovative ideas before his competitors, then it will achieve an advantage until its competitors have the same capability.

 

Communication advatages

Improved communications with customers, staff, suppliers and distributors.

 

Marketing research

The internet/intranet can track customer behaviour and the way in which staff deliver services

 

Service improvement

The company website can include interactive queries of databases containing stock availability or customer service questions.

 

Sales initiation

The internet can be used to support the buying decision even if the purchase does not occur via the web.