CHAPTER 1 INTRODUCTION TO INTERNET MARKETING

Internet marketing is one of the hottest subjects on the internet, with almost endless websites devoted to the subject. More and more people are realizing that there is a lot of money to be made online through legitimate businesses, such as selling on e-Bay, promoting affiliate products, and developing and selling their own products.

The major attraction of internet marketing is that there are almost no barriers to entry. Companies dont need any substantial capital to set there self up, as they would in the offline world. For example, company can immediately start selling unwanted household item on e-Bay, or they could sign up as an affiliate for a company and start promoting their products on the numerous sources of free ads, such as free classified and sites, safelists and traffic exchanges, and earn a commission for each sale.

Most of the resources that company need to start making money online can be found cheaply, or indeed free in some cases. Registering the domain name is a very cheap and easy process. A good way to get started is simply by creating own blog, using a service like Blogger, for example, who will host site on their server for free.

Internet marketing is now so popular, and will only continue to grow in the future. However, if company want to be successful marketing online there is a steep learning curve, and a lot of people simply give up after a few weeks because company havent made any money. It takes time to learn how to be successful. Experienced marketers have endless resources they can draw on, that will most likely have come from years of testing and researching.

The media portrayal of the internet often suggests that it is merely an alternative for traditional advertising. In fact, the internet can be readily applied to all aspects of marketing communications will need to support the entire marketing process. As we move into the new millennium, organizations will use internet technology in the form of intranets and extranets to support the operation of the internal and external value chains.

James Woolley is a successful internet marketer who has a number of sites in various niches. His latest site is a complete guide to internet marketing, which also includes a newsletter filled with free tips and bonuses.

This project will cover all the different ways in which the internet can be used to support the marketing process. Many organizations have begun this process with the development of the web sites in

the form of electronic them to add value to the full range of marketing functions.

FROM THE INTERNET TO INTRANETS AND EXTRANETS Intranet and extranet are two terms that have arisen in the 1990s to describe applications of internet technologies that do not involve communication with customers, but rather with company staff (intranet) and third party such as suppliers and distributors (extranet). While everyone connected to the internet can access a company internet web site, only those who have been given authorization can access an intranet and extranet. This relationship between the internet, intranet and extranet is indicated by figure. It can be seen that an intranet is effectively a private company internet with access to staff only. An extranet permits access to trusted third-parties and the internet provides global access.

Intranet A network within a company which enables access to company information using the familiar tools of the internet such as web browsers. Only staff within the company can access the intranet, which will be password protected.

Extranet It is formed by extending the intranet beyond a company

to customers, suppliers, collaborators or even competitors. This is again password protected to prevent access by all users.

The relationship between intranets, extranets and the inter

ABOUT THE TITLE 1. Title of the study: The present study is titled as Internet Marketing. 2. Objectives of the study:

To study the relevance of the internet to modern marketing concept. To study the cost aspect for doing online business. To study how the internet can be used in different marketing functions. To study both the harmful and beneficial effects of Internet Marketing. To study the influence of Internet Marketing on the customers buying habit. 3. Scope of the study: The area of our study is to how internet has an impact on the minds of the marketer and how it affects their psychology of doing a business on-line. 4. Limitation of the study: The main limitation of the study is, it is very difficult to market products or services offline.

5. Chapter Layout: Chapter one gives the Introduction of Internet Marketing. Chapter two The Internet & The Marketing Concept represents following: 1. What is Marketing? 2. What is Internet Marketing? 3. What business benefits can the Internet provide? 4. Market & product strategies grid? 5. 4 Ps of Internet Marketing? 6. 4 Cs of Internet Marketing? Chapter three Selection of Product & Service represents the following: 1. Information is a Hot Product 2. Coming up with hot product or services idea 3. Two key approaches to making money online 4. Web site design for the serious entrepreneur 5. Order processing & payment types 6. How to get a Merchant Account? 7. SWOT analysis for Internet Marketing Chapter four B2B & B2C Internet Marketing represents following: 1. Creating strategies and profitable alliances with Joint Ventures 2. Harnessing the power of E-mail

Chapter five gives a overall Conclusion to the overall project.

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CHAPTER-2 INTERNET & MARKETING CONCEPT

It is perhaps best to begin with the basic American Marketing Association definition of Marketing: Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

What Is Marketing? The definition summarized above has four critical features. These are: Marketing is a process: A process is a particular method of doing an activity, generally involving a series of steps or operations. The classical marketing approach involves four broad steps: Market Analysis, Market Planning, Implementation and Control. Market analysis involves searching for opportunities in the marketplace, upon which a particular firm with unique skills can capitalize. Market Planning requires segmentation, target market choice, positioning, and the marketing mix (also termed the 4Ps, or marketing program). Market implementation includes the systems and processes to go to market with the marketing program. Finally, marketing control refers to the informal and formal mechanism that marketing manager can use to keep the marketing program on course.
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Analysis, planning, implementation and control collectively provide a process for marketing manager to follow in the design and execution of marketing programs.

It involves a mix of product, pricing, promotion and distribution : A strong marketing programs do not involve one action,such as the design of great product. Rather, the most successful marketing programs involve mixing of ingredients of marketing to deliver value to customers. This mixing entails blending the right amount of the 4P ingredients, at the right time, and in the right sequence. Too often, marketing program fails because they allocate too many (or too few) resources in an uncoordinated way.

It is about exchange: Marketing is not successful unless two parties exchange something for value. The buyer may exchange time, money or services while the seller must exchange something of value to the buyer. The traditional retail context provides the simplest illustration of this principle. A given consumer exchanges money for a particular good or service. However, exchange also occurs in a wide variety of context, many of which are non monetary. These include bartering, volunteering services and political donations.

It is intended to satisfy individual and organizational needs: The aim of marketing is to provide a satisfactory outcome for both the firm and the customer. Firms can have highly satisfied However, those customers if they provide services for free.

organizations are not likely to have a long life. The key to modern marketing is simultaneously satisfy the customers, the firm and its shareholders. In the long run, the firm must have a positive cash flow or show a clear path to profitability for investors to maintain confidence.

What is Internet Marketing? If traditional marketing is about creating exchanges that simultaneously satisfy the firm and customer. Internet Marketing is the process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products and services that satisfy the goals of both parties. This definition can be divided into five components:

A process: Like a traditional marketing program, an internet marketing program involves a process. The seven stages of the internet marketing program process are setting corporate and business unit strategy, framing the market opportunity, formulating the marketing strategy, designing the customer experience, designing the marketing program, crafting the customer interface and
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evaluating the results of the marketing program. These seven stages must be coordinated and internally consistent. While the process can be described in a simple linear fashion, the marketing strategist often has to look back and forth during the seven stages.

Building and maintaining customer relationships: The goal of marketing is to build and create lasting customer relationships. Hence, the focal point shifts from finding customers to nurturing a sufficient number of committed, loyal customers. Successful marketing programs move target customers through three stages of relationship building: awareness, exploration and commitment. It is important to stress that the goal of Internet Marketing is not simply building relationships with online customers. Rather, the goal is to build offline as well as online relationships. The Internet Marketing program may well be part of a broader campaign to satisfy customers who use both online and offline services.

Online: By definition, Internet Marketing deals with levers that are available in the world of internet. However, as noted above, the success of an Internet Marketing program may rest with traditional, offline marketing vehicles. Consider, for example, the recruiting and jobseeking service Monster.com. Monsters success can be tied directly to effectiveness of its television advertising and in

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particular, its widely successful Super Bowl ads of the past two years.

Exchange: At the core of both online and offline worlds, exchange is still the heart of marketing. In the new economy, firms must be very sensitive to cross-channel exchanges. That is, an online marketing program must be evaluated according to its overall exchange impact not just the online exchange impact. Hence, online marketing may produce exchanges I retail stores. Firm must be increasingly sensitive to these cross-channel effects if they are to measure the independent effects of online and offline marketing programs.

Satisfaction of goals of both the parties: Mr. X person is a loyal user of the website weather.com. Each day he arises and checks the weather in his city as well as the weather in cities he will be travelling to during the week. He is clearly satisfied with service and loyal to site. To the extend that weather.com can monetize this loyalty most likely, if the firm is unable to meet its financial obligations to employees, suppliers or shareholders, then the exchange is unbalanced. Customers are still happy, but the firm is unable to sustain its revenue model. Both the parties must be satisfied for exchange to continue. The use of the internet to advertise and sell goods and services has become almost a necessity for businesses in the twenty-first
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century online or offline. Unfortunately for some, this industry moves very quickly and it can be quite difficult to penetrate the market or stay up to date with current trends.

What business benefits can the Internet provide? The reason is an additional source of revenue made possible by an alternative marketing and distribution channel. The marketing

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opportunities of using the Internet are indicated by the traditional marketing strategies grid for targeting new markets and products. The Internet can be used to achieve each of the four strategies directions as follows:

Market and product strategies grid: 1. Market Penetration: The internet can be used to sell more existing products into existing markets. This can be achieved by using the power of Internet for advertising products to increase awareness of products and the profile of the company amongst potential customers in an existing market . 2. Market Development: Here the internet is used to sell into new markets, taking advantage of the low cost of advertising internationally without the necessity for a supporting sales infrastructure in the customers country. 3. Product Development: New products are developed which can be delivered by the Internet. These would typically be information products such as market reports which can be purchased using electronic commerce.

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4. Diversification: In this sector, new products are developed which are sold into new markets. Companies can use the Internet to adopt new approaches to selling products which involves positioning in one part of the grid or in multiple quadrants.

4 Ps of Internet Marketing: When given the task of introducing a product to market there are simple objectives to focus on called the 4 Ps of Marketing, which helps the company to define their Marketing strategy: Product, Place, Promotion and price. What is the product you intend to market? Where is the place it will be sold? How will company implement the promotion of the product/service? And finally, what is the price including the cost of marketing and sales?

These are still relevant and important questions to address when marketing a product or service today, but does the internet require another dimension to consider? When leveraging the internet for their business is it another channel to transact commerce or a medium to promote or advertise their business? Do certain aspects of their product require an internet presence for particular features to work? Can the company reduce the cost of doing business and offer better pricing through self-service customer portals? Companies believe the internet does affect these four basic Ps objectives and adds a set of its own four correspondent objectives that extends beyond these basic four.

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4 Cs of Internet Marketing: 4 Cs of Internet Marketing are reduced to the most basic objectives of an Internet business, these objectives help in defining a websites primary purpose. They are: Content, Commerce, Customer Care and Converting to leads. Lets look at each of these individually and how they extend the original 4 Ps. Many of todays products are not

functionally simple, and when combined with other associated technologies or services, they are often complex to become a complete solution. Even consumer products often require a brand or mark to help influence the buying process going beyond the basic product feature. They too must conform or adapt to an operating environment that shapes the perceptions about the value to a consumer.

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Contend extends to Product: In the first Internet Marketing 4C, Content is an extension of Product. Some obvious examples of Internet business that created unique content as the actual product are web sites like Wall Street Journals wsj.com where current newspaper or internet only subscribers (for a small fee) can customized news alerts according to their own specific interest. The not so obvious cases are when software vendors provide additional support or advice via their web site. Adobe offers forums and exchanges to its customers, which contain tips and techniques on how to better use their products. This provides an additional edge when marketing the product or service if you can provide relevant content for free or fee to prospective customers. Would your product or service be enhanced by content that helps support your company as an industry thought leader or good citizen?

Commerce is the Place to shop: The Internet is and always will be a virtual Place. It may reflect the physical world with shopping malls and storefronts, but its mere existence still requires people and traditional support mechanisms in order to operate. It is a separate place or state that has its own set of protocols and rules f o r E -commerce centric Internet businesses like Amazon are a prime example of Commerce, the second C in the Internet marketing 4Cs. Transacting business solely or partly via the Internet offers customers the convenience to shop and order on-line at their schedules, and even business-tobusiness high technology companies have incorporated commerce
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successfully in fulfilling customer orders. When deciding if the companys web site warrants a commerce function the type of products the company sells shouldnt decide it, but instead if having a place the customers can access 24 hours a day, 7 days a week would be viewed as a service bonus.

Customer Care will affect Price The more direct support, a higher pricing model will be required. Can companys web site offer self-service customer care to help reduce the product prices? In this third C of the Internet Marketing 4Cs, providing superior Customer Care can reduce costs and allow improved pricing dynamics. Providing customer account status and records via the web site can reduce calls to support personnel and in the example of on-line banking is viewed as a customer benefit in managing their accounts at their own discretion. From access to secured account records to support forums or on-line training is companys Internet business providing customer care.

Converting Leads is the next level of Promotion As large and expansive as the Internet is its simply amazing oneon-one relationships can still be developed. The shear numbers of people and businesses connected to the Internet is staggering and its growth in adoption is unmatched as a new communication medium. Radio and television dont even come close in terms of years it has taken the Internet to reach such a mass audience. But
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is the Internet just another promotion channel similar to print ads or television. It may share some commonalities, but has one unique attribute interactivity. While other mediums all talk TO the customers, the Internet enables dialog WITH a customer.

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CHAPTER-3 SELECTION OF PRODUCTS OR SERVICES

One of the first things company have to decide when setting up an Internet business is whether company want to sell a product or service, both of which have their own advantages and disadvantages. 1. Product Advantages: Unlimited income potential because companies are not constrained by times the way they are with a service. The more products company sell, the higher their income will be particularly once company have automated their business. Disadvantages: Requires stocking and shipping (or drop shipping from a supplier) unless company can deliver it electronically. These costs eat into our profit margin. Generally requires that company fill large number of orders to make a reasonable living, unless companies have a product with a very high profit margin.

2. Services: The Internet provides both a communication and distribution channel for the provision of faster and more effective service delivery. Access to organization resources and information, the
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interactive nature of the Internet and the linkage of Internet technology hardware provide a wide range of opportunities for marketers to improve the service delivery process. Advantages: It is easier to make a profit quickly because the entire price of a service is paid directly to the company Once company has sold their clients on their service the first time, clients will likely to come back again and again.

Disadvantages: Companies are limited to a modest income because company can provide only so many services each day (unless they hire employees).

Information is a Hot Product!!! There is a reason the Internet has been deemed The Information Super Highway the entire medium is based on the concept of instant access to information! Every day there are millions of people online e-mailing friends and business associates, seeking financial services, looking for weather forecasts, researching products and services the list is endless! Its no wonder the Internet is revolutionizing the way customers use information. Open 24X7 days a week, the Internet has become a kind of information convenience store where customer can instantly find whatever they need with very little effort.
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For instance, if company is selling a book say Internet Marketing priced at $50 which costs them a mere $3 and still the customer is paying for it. Their customers are not paying for the value of the book itself they are paying for the value of the information which is provided to them by he company. Information products have the following advantages: Information products are easy to produce. There are almost no costs involved in publishing an Information product. Information products can be produced electronically. Delivery is instant. Company can automate their business entirely through E-commerce. If companies are selling product that requires physical delivery, then their goal should be to minimize the associated problems so that they become a non-issue for the consumer when they are making their buying decisions.

Company can do this by: Offering free delivery (Perhaps with purchases over a certain dollar figure?) Offering a wide variety of delivery options including overnight courier and economical snail mail Ensuring that the product is delivered in a timely fashion Do not run out of stock this is just bad business.

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The bottom line is that when companies are providing a service the way they can be ahead of the competitors is by providing something EXTRA. That Extra can be some free item, additional service, discounts or anything, which can be useful to their direct customers. The success formula is PRODUCT + EXTRA

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COMING UP WITH HOT PRODUCT OR SERVICE IDEAS

Develop a new product or service by researching potential competitors in their area of interest to find out what their bestselling product is and figure out a way to improve on it! 1. Check out the newsgroups, discussion boards, and chat rooms where their target market hangs out and accordingly ask their opinion about their expectation from a particular product or service. 2. If companies already have an existing customer base, they should do an e-mail survey! Surveys are not only a great way to improve on any existing product or service they may offer, they are also a great way to discover fresh product or service ideas. 3. Check out consumer review web sites to find out what people like and dislike about the competitors products. 4. Compile a certain type of information and then package it as an eBook. 5. One of the easiest places to look for product ideas is in their own industry. Yes, it is the company who are the best who know about their own industry and can right really useful data for others to refer regarding their industry.

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For example, if company is in the cellular phone industry, they might know that new sales people really need a quick reference training manual that lists all of the features and benefits of cell phone. 6. Another really powerful product idea is to locate a problem and then develop a product or service to solve it or in other words conducting NICHE MARKETING ON THE NET. 7. A newsletter is a great way to earn a large income very quickly. If fact, if companys newsletter covers an in-demand topic and they build up a large subscribe base, they could potentially take advantage of numerous streams of revenue including: Paid subscription Advertising Product promotions Selling customer database 8. Create a Tip-of-the-Day Newsletter. If companies have valuable information that will solve a problem or fill a need, then they may be able to set up their very own tip-of-the-day newsletter, sharing a quick tidbit of information with their subscribers every day. For a small fee, of course. For example, if company is a stock broker they could write an Investment Tip of The Day newsletter. Or if company is a real estate agent, they could set up a tip of the day newsletter called Increasing the property value, each day giving people new tricks and ideas for increasing the value of their home.
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9. Sell unique or hard to find products on auction web sites. For e.g.: company can sell some of the antiques, which are available easily in their area but are hard to find elsewhere and command a good price.

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TWO KEY APPROACHES OF MAKING MONEY ONLINE Basically, there are two key approaches to making money on the Internet. The first is referred to as a sales web site and the second is referred to as a portal web site.

SALES WEB SITE: The first approach to making money from our web site involves directly offering a product or service for sale. This method is fairly straightforward-company can either offer a product or service on their web site, or they can offer free information designed to lure people to another page where they have a product or service available. This is most popular way of making money online because its relatively easy to set up, and if they do it right, they can begin making money almost overnight. Just about everyone decides to set up their web site with the intention of selling a product or service first because they do not have the time and/or money that is required to develop a portal web site.

PORTAL WEB SITES: A portal web site is basically an entry page onto the web. Yahoo! And Google are the examples of portal sites. They are designed to attract a large, general audience, offering a broad range of information that includes weather, stocks, news and horoscope, as well as shopping, free e-mails and entertainment updates.
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Referred to as horizontal portals, these sites are designed to draw repeat visitors from all walks of life.

On the other hand, vertical portals (also referred to as niche portals) are developed with a very specific market in mind. A vertical portal focuses on a small portion of general audience, striving to meet their needs for information, products and services by becoming the online resource for that segment.

Portal sites are not discussed very often because they dont generate instant cash and they require a substantial investment of time (6 months or more) and money.

However, once these sites are successful, the payoff can be huge and the time commitment involved in maintaining the site from that point is minimal.

Autochannel.com has been a successful because it offers daily news on the automotive industry and free information on all things automotive (including new and used car prices and dealer invoice costs). The site generates over 300 visitors a week (thats million of hits a month), and this allows them to sell premium advertising space.

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Companies earn over $100,000 each month in advertising fees fro big corporations. There are three ways of making profit from a Portal web site: Company can sell a product or service by providing them with quality information. This requires them to have an e-commerce site that is equipped to take payment online, process orders, ship products, etc. Company can recommend the products or services of others to earn a referral fee. With this option company dont need an ecommerce enabled web site because company dont actually sell any product or service. Company can sell advertising space on their site.

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BUILDING AN EFFECTIVE SALES WEB SITE If anyone wants to do business online, then they need a web site. Their web site will be their advertisement. Their storefront, their customer service representative, their sales person, and their cash register.

Their website is their Business: So no matter what Internet Marketing techniques company chooses to employ, their web site will ultimately be their key to success online.

The phrase Surfing the Net suggests how visitors visited their site approach the Internet in general; they come in, sniff around, and move on. If company doesnt snag them immediately they will lose them forever.

Thats why it is so important that company pay careful attention to every aspect of their web site development. If customers dont stick around, to buy what companies are to offer because their web site loads at a snails pace its too hard to read or difficult to navigate, company wont get a second chance. A well-designed web site is an integral part of a successful sales process.

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Choosing a Web Host: Company simply cannot afford to do business with an unprofessional web hosting company; it will cost them revenue and credibility. Once companies have lost these three essentials, companies have nothing left nothing but a massive headache that is!

Company need to do their research and find a reliable hosting company. Just think about how many hundreds of thousands of dollars it could cost them if Their site goes down for just 2-3 hours a month Companies are forced to spend days chasing their technical support staff for an answer to a critical question There is a hardware failure and they lose all of their information including their site content And the list goes on and on. It can literally cost them their business! And remember their web host is responsible for making that vital connection between the company and their customers, so be sure that they take the time to get to know them well before signing any contracts or agreements.

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Purchasing a Domain Name: There are three key reasons why company need to purchase their own domain name: 1) Their web host cannot hold their hostage. They can easily move their domain name to another host. 2) Should company be forced to move their web site from one host to another, customers will still automatically find them because their domain name has not changed. 3) If they have a slick domain name, it can entice people surfing the web to visit their site before someone elses.

WEB SITE DESIGN STRATEGIES FOR THE SERIOUS ENTREPRENEUR: Today, most business purchasers looking to buy a product or service start the process by using a search engine to find vendors and product information. How can company make sure that their business is found when these people are looking for them or their competitors? Company need to make sure that they rank high in the search engine results, for as many search terms as possible, and hopefully for many of the terms that are searched on more frequently. The first step toward ranking high in the results for the most common term that people search is to have the right keywords as a part of their presence. Companies have to get on the first or second page of search results. If company are not on the first or second page of search results, it is almost like not being their at all.
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 Shorter search phrases are searched more often. Usually more searches occur for marketing than for online marketing and both of those terms are searched more frequently than small business online marketing. It is usually more difficult to get ranked on the first or second page for popular searches. Because people know that marketing is searched more often than small business marketing, more people are trying to get highly ranked for the more frequently searched term. Here are a few rules that company should follow when developing and maintaining their web site: It must be fast loading. Collect e-mail addresses and make a good database so as to maintain regular contact with their customers. It must be simple to navigate.

Be consistent.

Use descriptive and meaningful file names. Java, animation and wild graphics should be avoided to quite an extent. Guide visitors through the web site.
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 Make it easy for people to buy from the site.

Accommodate the customers who wish to order offline.

Be ready with fresh content. Kaizen should be always a part of the web site.

ORDERING PROCESSES AND PAYMENT TYPES Far too often, online business owners focus all of their energy and attention on developing a fabulous web site, writing killer sales copy, getting a top-ranking position in the search engines, and driving large volumes of traffic to their web sites and completely disregard their ordering system.

One could lose as much as 75%-85%, even 95% of their sales because of their ordering systems isnt user-friendly enough? All of their hard work creating the dynamite web site, writing the compelling sales copy, and drawing hoards of traffic to their site is all for naught if their ordering system has not been tested and tweaked. Company wants their customers to be able to slip through their order form like a greased pig on a water slide.

The first thing a visitor will do when they arrive at any companys web site is scroll down the page. If customer sees an order form at
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the bottom, the game is over. Companies just told them that they were about to try and sell them something.

People come online to research, not to buy! Company wants their sales letter to appear like an article full of free tips and information not a hard core sales pitch. At the bottom of their sales letter, they should include one link to their order form. It should be subtle and inconspicuous in nature. For example: Click here now to receive this special offer If companies want to capture the business of every buyer who arrives at their order form, then they need to offer a wide assortment of payment options. Cover all of the bases by including: Direct online marketing via a secure server. An 800 number available 24 hours a day, 7 days a week with live operators. An order form which customers can print out and fax or mail in.

Automation How does it work? Company should have a completely automated system which can perform the following tasks. The credit card is approved in real time while the customer waits for few moments.
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 The money is deposited to my merchants account. The order is e-mailed to a fulfillment company who ships the hard copy of the book. The customer is sent a confirmation of the order by e-mail.

Accept Credit Cards or business will suffer By accepting credit cards company give their business a measure of credibility they wont appear like some here today, gone tomorrow basement operation. Accepting credit cards online company will actually make their job a whole lot easier Company wont need to make as many trips to the bank because everything is deposited electronically. There is less paperwork to do. Company wont need to worry about bounced checks credit cards are almost equivalent to cash. Tracing orders for customer service is really easy. The most profit is made from online orders because they were nit paying fees for live operators with the 800 number or wasting precious time processing the manual order-form orders. and much more!

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How to get a Merchant Account? Get the own Visa/Master Card or any other accounts with a local bank. Get Visa/Master Card or any other accounts through a broker. Hire a fulfillment house and use their credit cards accounts.

Adding shopping carts to their site: So, what exactly IS Shopping Cart? A virtual shopping cart is a lot like the metal one at the grocery store with a whole lot of features added on. The virtual cart collects the products that visitors to their site have an interest in purchasing, and shoppers can add or remove items as they please, just like with a real shopping cart. Once the shopping cart hearts back from the merchants account, it 1. Generates a customer receipt and e-mails it to the customer, Then 2. Sends them a fax or an encrypted e-mail that contains the customers details and order information And at that point, company can fill the orders.

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SWOT ANALYSIS FOR INTERNET MARKETING SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketer to focus on key issues. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.

Strengths: Specialist marketing expertise A new, innovative product or service Location of the business Quality processes and procedures Any other aspects that adds value to the product or service Unique ideas, no one else is even close Strong artistic team Excellent animation abilities Experienced and innovative marketing officers

Weaknesses: Lack of marketing expertise Location of business Poor quality of services Damaged reputation Limit distribution channel People simply wont sign up for companies e-mail list
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 Offline representation is difficult Small opt-in customer list Most site users seek to remain anonymous Lack of interest from venture capitalist

Opportunities: A developing market such as the Internet Mergers, joint ventures or strategic alliances Moving into new market segments that offer improved profits A new international market A market vacated by an ineffective competitor Facilitate customer feedback large number of people are attracted No real competitors in their precise space

Threats: A new competitor in their home market Price wars with competitors A competitors has a new, innovative product or service Unknown product type available in market Taxation is introduced on their product or service Competitors have superior access to channels of distribution

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CHAPTER-4 B2B &B2C

B2B & B2C INTERNET MARKETING On the Internet, there are two kinds of marketing B2B and B2C. B2B is Business to Business and B2C is Business to Consumer. However in recent years two other terms have also evolved and they are B2E (Business to Employees) and B2G (Business to Government).

Business to Business: Business to business marketing or B2B Marketing commonly pertains to having clients that are also businesses. The basic strategies being used by business to business marketing under normal conditions as the same as those utilized to be able to ambit the target market. The only difference of this from what is common, it that this type of business caters to businesses as wells instead of individual clients.

B2B internet marketing is nothing but adopting internet to market the product or a service. Due to the revolution in the field of technology the b2b internet marketing has gained tremendous importance. Internet has become a crucial and mandatory tool in the business world.
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Business to business marketing would allow you to use various strategies or tools that would allow you to stick with the marketing necessities of a certain business. Business to business marketing can utilize a traditional method in marketing like print media and other forms of media, promotions as well as being able to create up stronger business and customer relationship.

In business to business marketing businesses are not looking into the consumer side now. The challenge here is that they are looking into a bigger group of prospect clients here and more probably attached to a different type of business. (The question is, when they try producing a business to business marketing plan with this type of business what would it be? In this case they would be using a business to business marketing plan instead of an individual marketing plan.) Well, the first thing which they may have to look into is if the business is capable of catering to another business before marketing their services. What is necessary for them to do before administering a business to business marketing campaign they should understand the capability of this business to meet the needs of a larger scope of targets which are in the business community.

Now, if they intend to search for their target prospects by conducting a business to business marketing campaign they should be able to get the right leads to do so. On the Internet they
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will have access to several websites that may connect them to where they can get the direct email of their target market.

In business to business marketing, direct mail lists or lead are needed for them to be able to establish their potential market in this business. They can look for providers that may give them access to direct mail listings that they can use for marketing their business and you may be able to avail the lists for a cost.

In utilizing direct mail they can assure themselves that their business to business marketing can provide those excellent results for the fact that they would have access to those who will surely be interested in their business as well as they will be able to estimate the size of their market. From here they will be able to build up a concept on what potential sales would they be getting and all they have to do next is to be ready with their sales pitches.

Business to Consumer: B2C marketing is great because the business is able to beat the geographical barriers and reach a global audience. Also, the business is able to reach the customer directly and cut all the middlemen who come in the picture when the product has to be delivered in the traditional way. B2C marketing also allows the business to cut costs.
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Another great thing about B2C marketing is that it allows most businesses a space. This means that even a small home business is given the opportunity to compete with the biggest retailers, and that is because the costs involved in online B2C marketing is much less that of traditional marketing.

For example if you are into selling watches over the Internet, and if you are a small or a mid sized retailer, then it would have been extremely difficult for you to create a corner for yourself in a traditional market simply because the big brands have a deep pocket. They can beat you easily through hundreds of insertions in newspapers and the television. But B2C marketing gives everyone a level playing field. Well almost!

B2C marketing is here to stay and realizing this, businesses are trying to make changes to find out the best way of reaching out to the customer.

A B2C website is a typical ecommerce website that sells its product or service to its customer base. However there are a few exceptions such as a 'lead generation' website. Here the website is basically collecting data on the visitor by making him fill out a form. Then many websites are involved in selling such data to other suppliers who are in the business of supplying the necessary product or service. And since the person who is filling out the form is opting-in (opt-in), sending communication to him would not be
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considered as spam. The person who is filling out is considered as the customer and so lead generation websites can also be termed as B2C. But such websites often also become B2B.

B2C websites can be typical ecommerce websites or they can also be establishments trying to reach out to the customer base. For example a bank enabling a customer to login and view the balance in his account and also perhaps transfer some money comes into the domain of B2C marketing. And here are a few examples of some of the biggest ecommerce websites that are all typically B2C Amazon, Ebay, Yahoo Stores, Barnesandnoble.com, Buy.com and others. In fact most traditional big businesses are now going in for B2C marketing because they know that the customer base is also shifting to the Internet.

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CREATING STRATEGIC AND PROFITABLE ALLIANCES WITH JOINT VENTURES Joint venture is all about related businesses teaming up and combining skills, products, services and resources to create new streams of income and profit.

How can a Joint Venture benefit business? Company can enter into joint venture deals both on and off the internet. Even if a company doesnt have a product to sell even if company doesnt have a service to sell... even if company doesnt have an established customer base companies can still joint venture using the internet expertise and marketing knowledge that companies have. In fact, if companies are strategic in their alliances, joint ventures can be a powerful way to dramatically increase their income in very little time with very little expense because v Joint ventures are a powerful way to strengthen their existing relationship with customers and subscribers by offering them increased value. v Joint ventures are great way to offer new products and services to their existing client and subscriber base without the expense of new product development and distribution. v Joint ventures give them perfect opportunity to capitalize on their good name.
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v Joint ventures allow them to increase the response company receive by as much as 400% by using third party endorsement.

v If your company is doing reputed business, then it should be really easy to find other companies to partner with.

Finding information about sites for Joint Ventures: Of course, surfing the Web to locate potential partners, researching their businesses, and manually recording all of their contact information can be a pretty tedious process. Its no surprise that their time will be better spend if company can get this done as quickly and painlessly as possible and move on to actually negotiating the deals. So below, are provided a list of two tools that should help speed things up considerably..

Tool #1: Alexa (http://www.alexa.com) Alexa is a live web navigation service that works with their browser to provide their customers with essential information about each web site they visit each company customer consider making a purchase from and anyone that customer might want to consider doing a joint venture with. The Alexa toolbar contains a host of useful information about whatever site that visitor happen to be visiting. For example, Alexa will tell them
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 How much traffic the site they are viewing receives, based on the number of page turns made on the site by Alexa users. The site owners personal contact information, including their address and phone number. The number of links pointing to a particular site, along with third party rating and reviews. Site that people have surfed to after visiting a particular site (based on the collective actions of those who surfed before us) and this is just to name a few of Alexas powerful features! Alexa gives company the power to easily and accurately research potential joint venture partners, so that company will know which sites and businesses are worth the most time and energy.

Tool#2:LinkPartnerPro ( http://www.markrtingtips.com/linkpartner) A great tool for automating the whole process of locating potential joint venture partners is the LInkPartnerPro software that will automatically search the internet for sites that company might want to do business with It basically spiders out across the net and collects the contact information for hundreds of potential joint venture partners based on the keywords and phrases company choose. So rather than spending days surfing for relevant web sites and recording the contact information for each manually, company can use LinkPartnerPro to collect all of this information for the company.
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Once the software locates sites of interest, it will extract the e-mail address, the web site tide, the URL, and the search engine where it found this information, and then save it all in a separate file on companys hard drive. This makes it really easy for them to check out the sites of potential joint venture partners and then contact them if they turn out to be a good prospect.

How to set up a Joint Venture? Company can simply follow these easy steps, and setting up their own joint ventures will be a breeze 1. Contact potential joint venture partners personally This is one situation where an e-mail just isnt going to do the trick. A personal phone call or meeting will be far more effective. Company will be taken much more seriously, and they will be able to answer visitors questions right on the spot plus its much more difficult to say no to someone they were speaking directly with than it is to reply no to an e-mail. 2. Explain to potential partners exactly how they will profit from this relationship If the potential partner cant see how doing business with the company is going to increase their sales and profits, why would they bother? Dont think companies are asking for too much. Yes, company want half the profits from the original sale, but their partner will make 10 times more money than they would have if they had marketed it themselves because theyll be able to keep 100% of the profits from the backend sales.
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3. If appropriate, offer them a sample of the product Once potential joint venture partners have experienced companys product or service, it will be much easier to sell them on why should promote it to their customers and subscribers. It will it will be easier to explain to them why their customers and subscribers will view them as a valuable resource, and how they will not only enhance their image, but also increase their profits by getting a cut of the additional sales. 4. Offer them a special discount to give to their customers Its good idea to emphasize that while a product or service is already an excellent value, company know that their partner will want to give his/her customers and subscribers a special deal. So tell them that they were willing to make their product or service available to their customers and subscribers at a special discounted price. 5. Make it financially appealing Dont be stringy. While its important that company claim as much of the profits for themselves as they can, if the deal isnt financially appealing to potential partners, its going to be nearly impossible to get them to sign on the dotted line.

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HARNESSING THE POWER OF E-MAIL E-mail gives a company the power to contact people again and again, promoting their products, their services and their web site, whatever they like for FREE! This is impossible offline! Unfortunately, too often this power goes to the heads of newbie marketers. This is where the trouble begins and the business ends!

A poorly designed e-mail campaign is a dangerous thing. Company can encourage 90% of their e-mail list company can be bombed, flamed or even sued by thousands of people (very, very rare though) they can be accused of spamming and their ISP can cancel their account and the list goes on!

The key elements of a successful e-mail marketing campaign are: Three E-mail Marketing Strategies: 1. Company can e-mail their salesletter directly to their customers and include link to their order form. 2. They can use the two-step approach that involves mailing a letter to their customers containing information that will be of interest to them and then directing customers with a link to companys actual sales copy.
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3. Company can e-mail the businesses online that deal directly with their target market to promote or sell their product on their sites. Link Partner Pro can assist company by gathering targeted e-mail addresses and names from related web sites, giving a company the power to e-mail them about possible joint ventures or links.

Developing a Successful E-mail Marketing Campaign Whatever method a company chooses, there are some key steps that a company need to follow if they want their e-mail campaign to be successful. The steps involved are: 1. E-mail a targeted list of people who will be interested in the offer: Their job is NOT to sell their product to everyone. Not everyone wants their products. Company should focus their energy on the people who do! Those who have opted-in to their mailing list, their customers and leads, and individuals who have requested information from their autoresponder are all excellent prospects. 2. Personalize each and every e-mail: People are more likely to read (as opposed to delete) e-mail addressed specifically to them and that presents their e-mail address in the To: field. There are a few programs available that will take their customer database and e-mail each address individually, personalizing

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their letters so that a company receives a much higher response. There are two of these programs that are highly recommended: Mailloop and My E-mail Manager. These e-mail and business automation options allow companies to automate all of their email chores, so that company can focus on growing their business rather than maintaining it. 3. Companys subject line is a key: Good subject lines (and headlines) make the difference between e-mail that automatically hits the trash bin and e-mail that is opened and read. The key here is to emphasize benefits. Some examples of good subject lines might be: Learn how you can safely lose 30 pounds in 4 weeks! Get better rate on your mortgage using this secret trick! The headline Whats in it for me? Its the best pulling headline or subject line by far it works like wildfire! 4. Company should summarize their sales pitch within the first paragraph: The first paragraph should make reference to their headline, building further excitement and motivating their potential customer to continue reading. Just because company have convinced them to open the e-mail with a compelling subject line doesnt mean that they were home free company need to build more excitement and make them curious about whats to come. Again, the key is to focus on benefits!

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5. Company should test their e-mail on a small percentage of their opt-in list: When trying to increase the response to their offer, company wants to test the headline or opening paragraph, their offer and their pricing. Testing their offer and their salescopy is the cheapest and most efficient way to maximize their sales profits. In fact, this should be an ongoing part of their business. Instead of sending their latest promotional letter to their entire customer base, try sending it to a small test group. Doing a trial run will allow them the opportunity to iron out any kinks, saving time, money and hassle. 6. Make it easy to read: It is not quite necessary to elaborate this. In short, the message should be short, precise and properly formatted so that it is easy to read. 7. Their e-mail should be easy to reply to: If mere is an e-mail address listed in their message, make sure that the company should have the mailto: prefix before it (i.e. mailto:bob@bob.com). Company should do this because most e-mail programs have a hotlink feature that will allow users to simply double-click on the e-mail address to automatically start a new e-mail. 8. Develop a killer signature file: An electronic signature also referred to as a sig file is a three to six line footer that a company can attach to the bottom of their e-mail message and public forum postings.
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It tells the person companies were writing to exactly who they are and how visitors can contact them. Company can include their auto responder address, their e-mail address, their office telephone number, their company name and slogan, etc whatever they like! Unlike a lot of other blatant advertisements, a sig file is universally accepted so take advantage of this perfect opportunity to plug their company, their products, their newsletter, etc

Building an Opt-In E-mail List Opt-in e-mail is the opposite of spam. When people voluntarily sign-up to receive our electronic message, visitors are opting-in to companys mailing list. Because visitors have actually requested information from a company, their messages are not considered to be junk mail, spam or unsolicited e-mail. All online businesses can benefit from having an opt-in mailing list of some kind. Opt-in e-mail lists generally fall into 5 categories 1. New Content Notification 2. Free Report and eBooks 3. Free e-zine/newsletter 4. Contests/Sweepstakes/Surveys 5. Customer database

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Collecting Targeted E-mail Addresses The best places to look for e-mail addresses are: In customer database In lists of ad respondents Autoresponder logs Subscriber database

A few third-party list providers who offer targeted opt-in e-mail lists are: PARTY Postmaster Direct Yes Mail E-Target List-Universe Focalex E-mail Address http://www.postmasterdirect.com http://www.yesmail.com http://www.e-target.com http://www.list-universe.com http://www.focalex.com

Spam vs. Bulk E-mail: Whats the difference? Spam, also referred to as UCE or Unsolicited Commercial Email, basically involves sending e-mail to large lists of people with whom company have no previous relationship. The e-mail address may have been harvested from AOL or CompuServe forums and member directories, classified ads, public newsgroups, etc

Bulk e-mail, on the other hand, involves e-mailing their previous customers, newsletter subscribers, opt-in e-mails lists, etc These
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are individuals who have willingly given their e-mail address to company

The elements of a successful Bulk E-mail Campaign 1. A company should e-mail a targeted opt-in e-mail list. 2. E-mail should be short, to the point, and offer the reader a benefit. 3. Follow all of the formatting and etiquette things described above. 4. Make it is to reply to by including reply to this e-mail or call our 800 number or visit our web site at http://www.mydomain.com, etc 5. Consider offering something FREE if a company dont have a solid rapport with the people in their opt-in e-mail list. 6. A company will be most successful if they save the selling for their web site. The purpose of their e-mail should be to quickly generate interest and then direct the reader to their web site or auto responder. This is where the free offer can be helpful.

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CHAPTER-5 CONCLUSION

In the world of business there is no magic formula that will guarantee success every time when they promote an idea. Everyone has probably heard the saying, Opportunity knocks but once. Dont believe this. Opportunities are around every corner. But companies need to do is visualize their potential and tap into it.

Use of the Internet for business marketers is a reality. Television, print, newspaper and other traditional marketing avenues will continue to be used but those who ignore the Internet will lose the race for competitive advantages. On the other hand, those who have embraced the Internet have demonstrated its power and are innovators.

The Internet gives business a better way to do the things which businesses do. The Internet has the capability to cut costs for selling and buying organizations. Online functions for customer service, product information, product ordering and order-tracking functions are available to customers 24 hour a day, every day of the year. These are value-added services that serve to differentiate the products they compliment.

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The bottom line is that the Internet and outsourcing of skill specific tasks has become one of todays most powerful, organization-shaping management strategies. Outsourcing noncore functions like web site maintenance and the use of Internet business consultants provides many companies with enhanced levels of service at a lower cost and will help businesses to compete in todays highly competitive marketplace. Global competition has intensified with the introduction of new technology will win. Internet Marketing enables a large company to be responsive, innovative and fast and a small company to compete internationally with the big companies. Information technology changes on a month-to month basis and sometimes wee-to-week. The pace of changes is accelerating. To remain competitive, companies must position themselves and commence marketing on the internet.

Ted turner was once asked what he attributed his success to. His reply was Early to bed, early to rise, work like hell, and advertise. This report attempts to promote that philosophy by showing how to combine hard work with technology to build lasting success.

With an Internet business, its extremely easy to work smarter rather than harder by taking advantage of opportunities to automate their daily chores dont be intimidated by the technology. The best way to learn new software or new marketing techniques is by playing with it and making a few mistakes.

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Whatever companies do, company should not hesitate. Remember: companies dont need a lot of money to get started online; companies simply need commitment and a desire to succeed.

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