Internet Marketing And Its Effectiveness


Both individuals and associations have been give standard definitions which are respected all over the world.

“Marketing in a free economy is the skill of selecting and fulfilling consumer desires so as to maximize the profitability per unit of capital employed in the enterprise.”

“Marketing is the process of discovering and translating consumer needs and wants into product and services specifications, creating demand for these products and services and. then, in turning ,expanding the demand.

According to marketing guru (Philip Kotler)”Marketing is the human activity directed at satisfying needs and wants through an exchange process”. His latest modified definition runs as” Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating exchanging if products and value with others”.


Internet marketing, also referred to as i-marketing, marketing, online marketing, or e marketing, is the marketing of products or services on the the Internet platform.

Internet marketing is process or the way of marketing going on internet .It is a collaboration of all internet related marketing activities, it actually includes every thing right from search engine marketing and optimization,to affiliate marketing and banner advertising, E mail newsletter marketing etc.Website analysis,perfomance tracking and customer relations are all considered to be parts of the umbrella head internet marketing.

History of internetmarketing

Internet Marketing now a days has become an integral part of people's life. When internet was first introduced not a single business corporation have recognized or realized the huge potential it had in store as a marketing tool. As early as 1990 it was just a medium used for emailing & data transfer. The best of the business organizations had declared it unfit for marketing purposes.

It was first time used in 1995 by Netscape the ISP and bought the online world into prominence by exploring its commercial potential into existence. The wide reach, cost effectiveness, capabilities and properties to measure the spending and easy accessibility made internet as the most feasible marketing tool.

The flood-gates opened after that:

Spending on Internet advertising in 1996 totaled $301 million in the U.S. While significant compared to the zero dollars spent in 1994, the figure paled in comparison to the $175 billion spent on traditional advertising as a whole that year. Online advertising grew to an industry worth nearly $1 billion in 1997.

In India, as reported by PWC, advertising industry recorded a growth of 22% over 2006 and thus contributed an estimated Rs. 196 billion in 2007 as compared with Rs. 161 billion in 2006. In the years 2004-2007, the advertising industry recorded a cumulative growth of 20% on an overall basis.

Though different segments of the industry grew at different rates, the highest growth was recorded by the smallest segment in the industry- online advertising. This segment grew by 69% from the previous year, albeit from a low base of Rs. 1.6 billion in 2006 to Rs. 2.7 billion in 2007. Its share in the overall advertising pie grew to 1.4% in 2007, up from 1.0% in 2006. In the last four years 2004-2007, the segment recorded a cumulative growth of 65% on an overall basis.

As broadband penetration increase in the Indian homes and also the mobile devices become more internet friendly, web/wap publishing companies would develop more content on the Internet. This would make online advertising more relevant, more creative and more informative.


There are several models associated with Internet marketing.


This is the model where goods are sold directly to consumers (B2C) or businesses (B2B)


—This is the model where the concept of sale of advertisining lead based websites generate value by acquiring sales leads from its websites


This is the process in which a product or service is developed by one person and is sold by other active seller for a share of profits. The owners of the product normally provide some marketing material (sales letter, affiliate link, tracking facility).


This is the process where a locally based company traditionally selling or dealing belly to belly and utilizing the Internet to find and nurture relationships, later to take those relationships offline.


This is that form of internet marketing which employs deceptive, less than truthful methods to drive web traffic to a website or affiliate marketing offer. This method sometimes includes spam, cloaking within search engine result pages, or routing users to pages they didn't initially request.

There are many other business models based on the specific needs of each person.


It is mostly based on search engine key words entered by user .The targeted user are typically browsing the Internet alone therefore the marketing messages can reach them personally. This approach is used in search marketing only.

And now with the advent of Web 2.0 tools, many users can interconnect as “peers.”


Internet marketing and geo marketing places a vital, important and an emphasis role on marketing that appeals to a specific behavior or interest, rather than reaching out to a broadly-defined demographic. “On- and Off-line” marketers typically segment their markets according to age group, gender, geography, and other general factors. Marketers have the luxury and advantage of targeting by activity and multilocation or geolocation. For example, a specific company can post advertisements on its websites and related name websites with the full knowledge that the audience has a related interest.

Internet marketing differs from magazine advertisements, where the goal is to appeal to the projected demographic of the periodical, but rather the advertiser has knowledge of the target audience—people who engage in certain activities (e.g., uploading pictures, contributing to blogs)— so the company does not rely on the expectation that a certain group of people will be interested in its new product or service.


The two words Geo targeting (in internet marketing) and geo marketing are the methods to determine the physical location of a website ie (GEOLOCATION) visitor with geolocation software, and delivering different contents to that visitor based on his or her location, such as country, region/state, city, metro code.

A good example for different content by choice in geo targeting are the FedEx website at where users having the choices to select their country locations first and are then presented with different site or article content depending on their selection.

Automated different content in Internet marketing and geomarketing, the delivery of different content based on the geographical geolocation and other personal information is automated.


Some of the most successful businesses organizations have leveraged the internet as part of their businesses.









The Advantages Disadvantages Of Internet Marketing are many. .


Low cost:

The internet made up of electrons, so there is not really anything physically to grab hold of like in a brick and mortar business. This considerably reduces your costs as you don't really need many materials or buildings. Just a computer with world wide web capabilities.

Very fast:

A great advertisement I saw once said “If you were an electron, you would be there by now”. This was an ad at an airport. It's referring to the internet. It's made up of electrons so it's VERY fast. Click a link, and you could be looking at an Australian website, click another one and you could be in America. If you wanted to get information any other way from these countries, you may end up having to go there. The world wide web eliminates the need for this. Go any where you want with the click of a button.

You can reach a global audience:

By this I mean, you don't have to set up shop somewhere and sell to the locals. You can set up an online shop, and sell to anyone in the world. This means a huge increase in potential revenues and a fraction of the cost it would take for you to set up shops all over the world.


Can leave the businessman feeling isolated:

This is very common. Because the World Wide Web is faceless (In most cases), it can appear cold and inhuman. This can leave you feeling isolated and very inward. Not a nice feeling at all. Everyone likes to socialize and meet people, but in this case, its quite difficult to, in business anyway.

Hard to tell if people are lying:

There is so much information on the world wide web now, it's sometimes hard to tell the difference between crap and quality. A lot of the crap is targeted at newbie's. Here's an example “Make money fast by doing NOTHING”, sound familiar? I bet you've had a ton of emails saying something similar.

Information Overload:

Once again we get to the part of there being a lot of information on the World Wide Web. There can be too much good information too. There can be a lot of competition for an industry; this can leave you more confused than if there were presented with loads of crap. You might not be able to tell who to choose. If you are a veteran of the net, you wont have much to worry about, however if you're a newbie then this is a problem.

The above are the positive and the negatives. Overall, I would definitely say that if you can do business online, then definitely do it. Internet Marketing, however, requires customers to use newer technologies than traditional media, the reason why not all people may get the message. Low speed Internet connections are one barrier. If companies build overly large or complicated web pages, some Internet users struggle to download the information on dial up connections or mobile devices. From the buyer's perspective, another limitation is the inability of shoppers to touch, smell, taste or try-on tangible goods before making an online purchase. However, it is an industry standard for e-commerce vendors to have liberal return policies and in store picks up services to reassure customers. Security concerns


It is important both to companies and consumers that participate in online business. Many consumers are hesitant to purchase items over the Internet because they do not trust that their personal information will remain private. Encryption is the primary method for implementing privacy policies.

Recently some companies that do business online have been caught giving away or selling information about their customers. Several of these companies provide guarantees on their websites, claiming that customer information will remain private. Some companies that purchase customer information offer the option for individuals to have their information removed from the database also known as opting out. However, many customers are unaware if and when their information is being shared, and are unable


  • It has ability to sell anything online.
  • It has ability to collect payment online.

Ability to market services for free or at a low cost.

  • IT can create affiliate systems and recruit affiliates.
  • Viability of lot's of resources freely available online.

Interested persons are open to sharing their knowledge on the internet


  • Confusing and way too many things to learn.
  • The more you know, the more you feel the more you have yet to know.
  • Typical business models last for 2 years but internet businesses sometimes lose appeal after 6 months.
  • Intense competition.
  • Overwhelming knowledge to be learned.
  • Too many skills to learn.
  • Takes a long time to learn many skills.
  • Too many scams on the internet.

Many people are scammed to thinking it is easy to make money on the internet.


Internet marketing the world's answer to getting in touch with anybody in the world. By using advertising banners, just pay per click advertising, e-mail marketing strategies, searching engine optimized articles, article and blog marketing; businesses are able to connect with a wide range of potential customers without needing to create or establish a physical presence.

The use of Internet marketing has been observed in e-mails, Internet sites, and also in traditional business advertisements. Few people can go through their computers without checking some sort of advertisement. Advertisements are set up in such order to be relevant to the sites that they are on, leading these daily businesses to the customer that may be looking or searching for them. The property to specialize and individualize advertising campaigns is the benefit of internet marketing.

These ads are also quite inexpensive to place and work well to handle the customer without needing additional employees to manage the responses. Many of the internet marketing tools can be set up to direct a customer to more information or a website in which they can purchase the services or products.

The efficiency of internet marketing is truly what sets it apart from other techniques. While some marketing strategies take time to enact, internet marketing can be ready for the public to see within minutes, even seconds in some cases. This speed allows businesses to advertise new products and services within minutes of their readiness, not days or weeks.

With the ability to reach all of the expected corners of the world without having and managing to employ more people to handle the sections of responses, internet marketing is proving itself as important asset and a necessity in business.



According to the recent research report of N.Goldman Sachs, our country (INDIA) has emerged as the second largest Internet market user in Asia after China with 100 million users in 2006. It estimates that Indian Internet Users will increase by 140% compounded annual growth rate (CAGR) from 0.5 million users recorded at end of 1998. Also the figures of the number of Internet Service Providers (ISPs) are expected to increase by leaps and bounds and March 2006 sees at least 30 private international gateways. As per preliminary findings of the NASSCOM survey, the total volume of E-commerce transactions in India was about Rs.131 crore in the year 1998-99. Out of this volume, about Rs.12 crore were contributed by retail Internet or Business-to-Consumer transactions, and about Rs.119 crore were contributed by Business-to-Business transactions. The survey also revealed that E-Business transactions in India are expected to exceed Rs.300 crore during 1999-2000. Out of this, about Rs.50 crore could comprise of retail transactions.

For Business-to-Business transactions, Indian industries are expected to reach online penetration of 2% by 2003 and 8% by 2008.

Effectiveness of the Net in Reaching Out to the Masses

The reach of Internet may not yet be as wide as that of other mass media, but given its unique advantages, it is undoubtedly the communication medium of the future. Marketers around the world have from time to time tried to reach their target audiences through various media. Scientific and technological advances have and will continue to create newer media to improve communication, and marketers will try to use the same to effectively address their audiences. Internet is one of the latest to join the list of such media inventions.

Internet Fame with the Indian Audiences

Let us first take a quick look at the audience that this medium is trying to reach. The top 8 metros of the country, the scope of the Internet as a medium to reach out to a large number of people is presently limited. However, some of these limitations can be addressed.

  1. Internet is available in regional languages also. Even today this medium is largely confined to only those who are literate in English. Various initiatives of companies like ITC and HLL like E-choupal and i-Shakhty have given a considerable boost to vernacular usage of internet
  2. Internet is accessible though other media also and not only through telephone lines. In the current scenario, the usage of internet might be dominated by telephone lines, but broadband and cable net are coming in a huge way.
  3. Government policies are aimed at broadening and strengthening the infrastructure required for Internet accessibility.

There could be several other modes to increase the reach of the Internet. However, with the current limitations, the projections on Internet usage appear to be as

In a fast-paced society, everything has to be done in an instant. Everything costs more. Everything moves faster. The good thing is that we can have anything we want in just one click. We have the different technological advances right within our reach - time efficient and cost effective- which make our way of life more convenient. All of these realities of modern society have been in the name of progress. One of the most popular, most obvious technological advances at present is the Internet, which provides the users convenience from entertainment to education and from personal concerns to business matters. Indeed, the Internet introduces many unique benefits to marketing including low costs in distributing information and media to a global audience. Internet marketing, as of 2007, is growing faster than other types of media. Since exposure, response and overall efficiency of Internet media is easier to track than traditional “off-line” media, through the use of web analytics for instance, Internet marketing can offer a greater sense of accountability for advertisers. Increasingly, however, marketers and their clients are becoming aware of the need to measure the collaborative effects of marketing, that is, how the Internet affects in-store sales.

One of the benefits due to Internet marketing is the availability of lot of information. When Comparing it to traditional media services, such as print, radio and TV, Internet marketing are having a benefit of relatively low cost of entry. Consumers can easily access the Internet and research products, as well as buy them at any time, any day. Companies which are doing Internet marketing can also save money because of a less need for a sales force. Overall, Internet marketing can be helpful to business' expansion from a local market level to a national or international level at faster speed.

It continues to grow in the importance of most companies have been making substantial commitments to add Internet marketing to their marketing mix. Other benefits of it are measurability, flexibility, and affordability . Internet marketing has dominated other traditional marketing outlets, and these benefits are especially attractive to home based businesses.


Internet marketing have put a large impact on number of industries which includes music, banking, and flea markets, also the advertising industry itself. The advertisers increase and shift more of their expected budgets online, it is now dominating radio in terms of market share. In the music industry, many costumers have begun buying and downloading or recording music files (e.g. MP3s) over the internet instead of buying CDs. Unique items which were previously be available at flea markets are being sold on eBay. E Bay has affected the prices in the industry, buyers and sellers often look at prices available on the website before going to flea markets and the eBay price often becomes what the item is sold for. Also more and more flea market sellers are putting their products up for sale online and running their business out of their homes.


What are the various internet marketing strategies a company has to implement to be successful and more effective? Here are some given below as


What a customer specifically looking for. Must know their problems or desires. A company must be in their shoes and find out what is that would make them feel better (an offer).


why they should buy from a particular company. How is it better than the rest? Why a customer should trust on company. Are it offering its own or someone else's product? How it can create an irresistible offer so customers beg to sell it to them?

There are millions of people buying online every single day. If they're not buying from particular company, then whose fault is that - theirs or companies.

Before company even starts creating internet marketing strategy for its website(s), it needs to do a research. That's where it all begins actually. Just like in any business, it have to understand where it is and what can it do.

Phase I - Online Research this phase, a company must research its market. Who are its main competitors? What are they doing online? PPC, SEO, press releases, develop their own products, do affiliate marketing or Ad sense? What are their weaknesses? Do they offer a guarantee? Is their product really good? Do they build links constantly or not?

Targeting favorite customers: Where do they hangout: My Space or You Tube? Are they freebie seekers or desperate buyers? What forces them to buy one or another product? Read reviews, forums, testimonials to find out as much as you can about your target market.

Phase II - Data Analysis

If company performed thorough online market research, it's time to systematize the data it have. Write down what are the main strengths and weaknesses of your competitors. Maybe it has more time than your competitors? A company knows some targeted traffic source that others don't. How might this affect its business?Which are the places its target market usually is. What are their main concerns? Maybe they're not satisfied with the products in the market. Can offer something better, maybe in a form of a bonus? After that, it can come to the next step, which is developing its internet marketing .

PHASE III _ STRATEGY DEVELOPMENT information of target market and competitors is important. for companyto create inter marketing strategies who are its competitors and what can it offer to its target market.

It involves a little bit of planning. What marketing methods company uses and which ones it can afford. PPC, SEO, email, blogging, podcasting, video blogging, webinars, viral traffic generation, link building, banner exchange or others.

A company must have enough time to perform search engine optimization. If so, then it can do everything , day in day out, to rank at the top in search engines. .

Phase IV- Monitoring Performance

When ever an internet marketing plan is set up by a company it can start implementing it right away. The final step is to start monitoring your internet marketing campaigns. The keywords people have to type into search engines to find your site should be launched which will brought you the most money in PPC marketing. And then realizing satisfaction with its SEO rankings. Observe the %age of visitors going through its site.

This all is possible only with the help of close monitoring. It can discover what works and what doesn't. Testing landing pages, testing Ad words ads against each other (A/B split testing) can show it some amazing results.


INTERNET marketing is rapidly spreading through out the world .Internet Marketing, however, requires customers to use newer technologies than traditional media, the reason why not all people may get the message. If companies build overly large or complicated web pages, some Internet users struggle to download the information on dial up connections or mobile devices. However, it is an industry standard for e-commerce vendors to have liberal return policies and in store picks up services to reassure customers. Internet marketing have shown a great effectiveness over the years and from it advantages I come to this point that combination of internet marketing and traditional marketing will be more beneficial for the customers.But overall internet marketing is beneficial for customers dealing with the company at regular basis.



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