Despite the proven efficiency, marketing communications online have still not been appreciated or understood as well as these should be. The marketing mix should be designed after giving due consideration to management of the company's reputation online, as the media business continues its shift towards the World Wide Web.
Product reviews, blogs, message boards and podcasts, among other mechanisms, are part of online communities that provide forums, where suggestions, questions, criticism, praises, etc., are posted. The businesses often take an active part in the establishment of such communities, so that customers who feel satisfied by their services or products can come together and share their experiences. All this forms part of the concept of new media and incorporates a fair level of transparency.
Rather than believing advertising dispensed through the print media, television, direct mail and radio, consumers are increasingly known to believe opinions and advice obtained from peers, who have tried out a service or product. Referrals and Internet research are the basis of decisions to purchase, more than ever before, and statistical evidence is now available to show that there is truth in this contention. Therefore, the premise that points towards influence among consumers being lost by advertising of the traditional type is gaining credence and can be used as a powerful argument in favor of the promotion of new media marketing.
Potential risks might actually be mitigated through answers that are transparent and honest and aimed at solving issues, even though one view is that weaknesses of the business are likely to be exposed to competitors, besides individuals, who might post comments that could be highly critical, at times.
Podcasts, blogs, web video productions, RSS and other such technology applications driven by the Internet effectively aid the process of new media marketing.
Despite that, numerous organizations are yet to engage customers in online communication.
This is often because:
1. Several individuals have been asked to leave employment on account of some of the content on their blogs having been found to be objectionable by their employers. So, it is evident that many companies still do not have proper guidelines in place for employees who engage in digital communication.
2. Often, it is not clearly specified as to which department is supposed to interact online, as part of the new media marketing process.
3. IT personnel are often required to assist public relations or marketing professionals with implementation of marketing initiatives that are based online, since they are not capable of doing it on their own. This is despite the fact that the key messages of the organization are meant to be articulated by the PR or marketing professionals.
4. Despite what is evident from the trends, marketing budgets of organizations continue to allocate more funds for traditional and, often, offline channels of communication, even as marketing communications that are based online continue to become more efficient.
5. The readership of newspapers continues to decline in the US and the broadcast audiences continue to become increasingly fragmented, along with increase in the hours spent online daily by users.
The following have also changed the situation in favor of the new media:
1. The growth of wikis, podcasts, blogs and other such media that are generated by consumers.
2. Conventional media is trusted less by people than in the past.
3. Since conventional media content has become homogenized, on account of consolidation in the entertainment and media industries, some niche markets are not being catered to sufficiently.
The capacity of conventional media to cover daily happenings is increasingly becoming restricted, partly on account of the advent of new media. So, as the impact created by press releases in the conventional media decreases, it is advisable for companies to leverage new media to communicate with existing as well as prospective customers or clients, rather than corporate communications or public relations. This should be done despite the attempts of newspaper companies to overcome the challenges they are surrounded with.
Database marketing, websites, content management, blogs, search optimization and podcasts should all be employed as a part of the new media marketing communications programs.
New Media And Marketing
The advent of the New Media and Internet have increased possibilities of online marketing and internet retailing with new features of interactive shopping, pod casting and e-marketing. Consumers are connected to online shopping sites with WiFi, Internet or 3G mobile phones. E commerce has taken a new dimension in retailing with increasing number of people shopping online and even making flight bookings online (Papers4you.com, 2006). One such example is the traffic on the British Airways website. A comparative analysis of popular travel related websites and online ticketing facilities give us details on transaction costs, and individual and company perceptions on e commerce facilities for ticketing and travel. Internet marketing however meets with major challenges of keeping pace with consumer demands and developing relationship marketing to maintain consumer loyalty (Enzmann and Schneider, 2005). The advantages and disadvantages of internet retailing could be studied in contrast to traditional marketing considering issues related to online branding, consumer loyalty, spam, and advertising strategies. The challenges of online marketing could be studied with the same models used for general marketing management such as 4Ps or 7Ps models and trends in internet marketing and transactions can also be studied (Papers4you.com, 2006). Online pricing remains one of the major challenges and so is the prospect of virtual interactions with customers as opposed to face to face interactions in a traditional market. Issues of security and privacy are important in e marketing and shopping through secured sites is one of the major concerns of consumers (Enzmann and Schneider, 2005). Direct email marketing of goods and services has led to debates on spam and the need for strict legislation on email marketing.
Online marketing seems to have completely revolutionized marketing techniques although it has limitations on usage, privacy issues and security. The different traditional and non traditional advertising media such as newspapers, television, magazines, newsletters, direct mail, telephone, and internet may have to be compared more thoroughly and extensively to understand whether in the future online marketing would replace traditional marketing completely. Apart from ease and convenience of internet marketing, one major advantage of internet marketing is customization or personalization of products and services to suit the needs and tastes of individual customers (Ho, 2006). Tailored products or services may not have been a very wide option in traditional shopping which shows that interactive shopping has moved a step closer to the needs of the consumer and has improved the shopping experience in general. Online branding has made local consumer goods popular in global markets (Ibeh et al, 2005). The concept of relationship marketing is an important strategy for the new media and is an important tool within the contemporary marketing environment in all spheres of business, from financial services to electronics products. Online marketing has been used by banks and supermarkets and charities like Oxfam suggesting the rapid change in marketing methods used by a wide variety of organizations and show the wide acceptability of online retailing and marketing in changing business environments.
Bibliography
Ching H.L.; Ellis P. (2004) Marketing in Cyberspace: What Factors Drive E-Commerce Adoption? Journal of Marketing Management, Volume 20, Numbers 3-4, pp. 409-429(21)
Enzmann, Matthias; Schneider, Markus (2005) Improving Customer Retention in E-Commerce through a Secure and Privacy-Enhanced Loyalty System Information Systems Frontiers, Volume 7, Numbers 4-5, pp. 359-370(12)
Ho, Shuk Ying (2006) The Attraction of Internet Personalization to Web Users Electronic Markets, Volume 16, Number 1, Number 1 pp. 41-50(10)
Ibeh, Kevin I.N.; Luo, Ying; Dinnie, Keith (2005) E-branding strategies of internet companies: Some preliminary insights from the UK The Journal of Brand Management, Volume 12, Number 5, pp. 355-373(19)
Papers For You (2006) "P/M/445. Internet marketing: problems and prospects", Available from http://www.coursework4you.co.uk/sprtmrk8.htm [17/06/2006]
Papers For You (2006) "P/M/434. E-marketing vs. traditional marketing: upsides and downsides", Available from Papers4you.com [18/06/2006]
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