Online Marketing: Meaning, Components, and Advantages

Online Marketing

The 21st century is the century of management information systems, e-commerce, and the Internet. The whole world is turning from atoms to bit-bytes. Markets are changing, and distribution systems are changing. Globalization is accelerating, and consumers are demanding customized products.

The old techniques of marketing and commerce are no longer useful when cheap goods from abroad are being poured into every country in the world. The old economics was based on the efficient management of industrial production. The new economics focuses on information and knowledge management.

Meaning of Online Marketing

The exchange and distribution of business commerce with the help of electronic devices and media is called online marketing. Out of numerous business functions or transactions, most of the functions or transactions done electronically over a computer network are called online marketing.

Online marketing has become possible as the transactions of the entire commercial world are connected through the Internet. P.C. (Personal Computer) made it possible through a combination of credit-debit cards, telephones, and the Internet.

During information and entertainment programs broadcast on the Internet, businesses include information about their goods and services and attractive advertising for their purchase by displaying their website address. Just as a potential customer sees advertisements using television, radio, and newspapers, they also see these advertisements on Internet programs.

Businesses also advertise their website addresses to potential customers through systematic media like television, radio, and newspapers.

A potential customer goes to the website of a business through the Internet to get information about goods and services through electronic devices and media.

They get the additional information they need for the goods and services they require, and if they find the survey details satisfactory, like a normal customer, they place an order on the same website.

They also provide their credit-debit card information. Customer inquiries on the website, orders, and credit-debit card information for payment are obtained by the entrepreneur, who interacts with the prospective customer through the Internet itself.

Due to the credit-debit card, they get payment assurance, so they dispatch the goods to the address provided by the customer.

This dispatch is done through systematic means such as post, courier, railway, air cargo, etc.

As agreed with the customer over the Internet, the bill amount is debited to the account in the credit-debit card through electronic means. Thus, this entire commercial process is done through electronic tools and media, hence it is called online marketing.

Components of Online Marketing:

The following are the components of online marketing:

(1) Personal Computer:

P.C. is an important component of e-commerce. P.C. (Personal Computer) is personal to a person or their family. Institutions also use PCs. The Internet connection is taken with the PC. A P.C. brings the company directly in touch with the customer and the customer with the manufacturers. One can get information about goods and services and order goods from anywhere in the world while sitting at home or at an office desk.

(2) Internet:

‘Inter’ means internal, and ‘Net’ means network. The general meaning of ‘internal network’ is the Internet. This web belongs to computers. More specifically, the Internet is a network of computers for communication through an intermediary organization, by telephone, or by independent communication, in addition to computing and storing various types of information. To exchange this stored information, communication between computers has been made possible by telephones and communication satellites. Computers are connected to telephone services, and the telephone service uses satellites to carry messages. Computers can exchange messages with the help of telephones. Now, service providers have eliminated the necessity of telephones by creating their own separate communication systems. Multiple computers can be interconnected to form a network and exchange messages with any connected computer. The entire system of such connected computers is the Internet.

Every computer on the Internet needs an address to identify itself. Just as an address is important in normal communication, so is an Internet address. This address is called an IP address. No two computers can have the same IP address. Based on this name or address, the Internet user on the computer can keep in touch with others and use website information. To use the Internet, one has to get access from Internet Service Providers (ISPs) by paying certain fees. ISPs are made up of gateway servers that are always connected to the Internet. The Internet consists of two types of computers: servers and clients. A computer that provides readable information is called a server, while a computer that reads the information provided by the server is called a client.

(3) E-mail:

E-mail is a process of communication. It involves exchanging messages by typing them on a computer screen using a computer over the Internet. Apart from computers, e-mail can be sent through mobile phones and other electronic devices. E-mail is a form of communication. Both parties need to exchange addresses for communication.

A central organization registers e-mail addresses. The use of the @ sign has been made mandatory to prepare an address. The address word must not be registered by anyone else. The address should state through which intermediary organization e-mails are to be exchanged. A full stop in this organization is identified by a dot. ‘.com’ is mandatory at the end of every individual address. Mutual message exchange parties have to communicate such prepared addresses to each other. E-mail should be received only by the person to whom it is sent. Therefore, the intermediate organization receiving the message registers a signal known as a password. This password is not displayed on the e-mail screen until the recipient displays it on the Internet. Passwords can also be typed in such a way that they do not print on the screen using a service to keep them private. E-mail privacy can be further ensured by changing passwords periodically.

(4) Credit-Debit Cards:

Internet banking and credit-debit cards are important for e-commerce. Customers use credit or debit cards to pay money when they buy or place an order via e-mail over the Internet. A card issued by a bank guarantees payment. Credit-debit cards are plastic money and have a wide impact on the modern economy.

(5) E-Marketing:

E-marketing is an important component of online marketing. The most important aspect of commercial transactions is the interaction between two parties. The Internet is spread over a wide area. The medium of communication between Internet users is e-mail, but e-marketing is essential to attract people to transact and make inquiries. E-marketing is a management process that seeks to find customers and satisfy their needs profitably. Various electronic means are used for this purpose. Electronic marketing is a new way of direct marketing, in which the Internet, e-mail, fax, mobile phones, etc., provide a framework for information communication. This enables businesses to acquire more customers worldwide and maintain relationships with both new and existing customers.

Advantages of Online Marketing:

Online marketing makes the world a global market, connecting traders, merchants, producers, and consumers directly. This facilitates research, development, and the availability of desired services. The key advantages include:

1. Global Market: Anyone can shop easily from anywhere in the world.
2. Development of International Trade: Easy marketing for global manufacturers and traders.
3. Easier Delivery of Goods: Immediate order and delivery process.
4. Speed and Ease of Payment: Fast, reliable payments via e-banking and credit cards.
5. Saving of Time: Customers can shop from home or office.
6. Saving of Labor: No need to visit multiple markets; reduced workforce for businesses.
7. Flawless Transactions: Reduces human error through electronic transactions.
8. Reduction in Investment: Less need for large showrooms and warehouses.
9. Low Stock Requirement: Goods are delivered as per customer orders, reducing storage costs.
10. Ease for New Manufacturers: Easier market entry for new businesses.
11. Facilitates Research and Development: Enables rapid product innovation and expansion.