Internet marketing is the use of the Internet to advertise and sell goods and services. Internet Marketing includes pay per click advertising, banner ads, e-mail marketing, search engine marketing (including search engine optimization), blog marketing, and article marketing.

Definition and Scope

Internet marketing is a component of electronic commerce. Internet marketing can include information management, public relations, customer service, and sales. Electronic commerce and Internet marketing have become popular as Internet access is becoming more widely available and used. Well over one third of consumers who have Internet access in their homes report using the Internet to make purchases.

History

Internet marketing first began in the early 1990s as simple, text-based websites that offered product information. It then evolved into advertisements complete with graphics. The most recent step in this evolution was the creation of complete online businesses that use the Internet to promote and sell their services and goods.

Business Models and Formats

Internet marketing is associated with several business models. The main models include business-to-business and business-to-consumer (B2C). B2B consists of companies doing business with each other, whereas B2C involves selling directly to the end consumer. When Internet marketing first began, the B2C model was first to emerge. B2B transactions were more complex and came about later. A third, less common business model is peer-to-peer (P2P), where individuals exchange goods between themselves. An example of P2P is Napster, which is built upon individuals sharing files.

Internet marketing can also be seen in various formats. One version is name-your-price (e.g. Priceline.com). With this format, customers are able to state what price range they wish to spend and then select from items at that price range. With find-the-best-price websites (e.g. Hotwire.com), Internet users can search for the lowest prices on items. A final format is online auctions (e.g. Ebay.com) where buyers bid on listed items.

Benefits

Some of the benefits associated with Internet marketing include the availability of information. Consumers can log onto the Internet and learn about products, as well as purchase them, at any hour. Companies that use Internet marketing can also save money because of a reduced need for a sales force. Overall, Internet marketing can help expand from a local market to both national and international marketplaces.

Limitations

Limitations of Internet marketing create problems for both companies and consumers. Slow Internet connections can cause difficulties. If companies put too much information on their website, Internet users may struggle to load the web page. Also, Internet marketing does not allow shoppers to touch or try-on items before purchasing them.

Security Concerns

For both companies and consumers that participate in online business, security concerns are very important. Many consumers are hesitant to buy items over the Internet because they do not trust that their personal information will remain private. Recently, some companies that do business online have been caught giving away or selling information about their customers. Several of these companies have guarantees on their websites, claiming customer information will be private. By selling customer information, these companies are breaking their own, publicized policy. Some companies that buy customer information offer the option for individuals to have their information removed from the database (known as opting out). However, many customers are unaware that their information is being shared and are unable to stop the transfer of their information between companies.

Security concerns are of great importance and online companies have been working hard to create solutions. Encryption is one of the main methods for dealing with privacy and security concerns on the Internet. Encryption is defined as the conversion of data into a form called a cipher. This cipher cannot be easily intercepted unless an individual is authorized by the program or company that completed the encryption. In general, the stronger the cipher, the better protected the data is. However, the stronger the cipher, the more expensive encryption becomes.

Effects on Industries

Internet marketing has had a large impact on several industries including music, banking, and flea markets. In the music industry, many consumers have begun buying and downloading MP3s over the Internet instead of simply buying CDs. The debate over the legality of downloading MP3s has become a major concern for those in the music industry.

Internet marketing has also affected the banking industry. More and more banks are offering the ability to perform banking tasks online. Online banking is believed to appeal to customers because it is more convenient then visiting bank branches. Currently, over 50 million U.S. adults now bank online. Online banking is now the fastest-growing Internet activity. The increasing speed of Internet connections is the main reason for the fast-growth. Of those individuals who use the Internet, 44% now perform banking activities over the Internet.

As Internet auctions have gained popularity, flea markets are struggling. Unique items that could previously be found at flea markets are being sold on Ebay.com instead. Ebay.com has also affected the prices in the industry. Buyers and sellers often look at prices on the website before going to flea markets and the Ebay.com price often becomes what the item is sold for. More and more flea market sellers are putting their items up for sale online and running their business out of their homes.

Recent Issues

In November 2004, a lawsuit was filed against Bonzi Buddy software. The lawsuit alleged that Bonzi’s banner ads were deceptive. These ads often looked like Microsoft Windows message boxes. Internet users would run across the ads and when they attempted to close the boxes, they found themselves redirected to a website determined by Bonzi.

On May 27, 2005, Bonzi Buddy agreed to change the format of its ads so they did not resemble Windows message boxes. The boxes will now contain the word “Advertisement” so computer users know what they are looking at. The boxes will also no longer carry buttons that do not perform the correct actions.

Sales tax issues have also recently become debated. The current laws require that buyers of online products pay their state all due taxes on these goods at the end of the year, along with their other state taxes. However, most consumers do not appear to be making these payments. Thirteen states have now begun encouraging Internet businesses to collect sales tax on every sale. These states are currently not forcing the companies to collect the tax. However, it appears that if companies do not begin collecting the sales tax on their own, states will begin forcing the companies to do so. The states are claiming that each year they lose $15 billion in unpaid sales taxes associated with online purchases.

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The first recorded use of the term spyware occurred on October 17, 1994 in a Usenet post that poked fun at Microsoft’s business model. Spyware later came to refer to espionage equipment such as tiny cameras. However, in early 2000 the founder of Zone Labs, Gregor Freund, used the term in a press release for the ZoneAlarm Personal Firewall. ^[1] Since then, computer-users have used the term in its current sense.

In early 2000, Steve Gibson of Gibson Research realized that advertising software had been installed on his system, and he suspected that the software was stealing his personal information. After analyzing the software he determined that they were adware components from the companies Aureate (later Radiate) and Conducent. He eventually rescinded his claim that the ad software collected information without the user’s knowledge, but still chastised the ad companies for covertly installing the spyware and making it difficult to remove.

As a result of his analysis in 2000, Gibson released the first anti-spyware program, OptOut, and many more software-based antidotes have appeared since then. ^[1] International Charter now offers software developers a Spyware-Free Certification program. ^[2]

According to a November 2004 study by AOL and the National Cyber-Security Alliance, 80% of surveyed users’ computers had some form of spyware, with an average of 93 spyware components per computer. 89% of surveyed users with spyware reported that they did not know of its presence, and 95% reported that they had not given permission for the installation of the spyware. ^[3]

References

1. ↑ ^{a b} Wienbar, Sharon. “The Spyware Inferno“. News.com. August 13, 2004.
2. ↑ “Spyware Certification“. International Charter. Retrieved July 10, 2005.
3. ↑ “AOL/NCSA Online Safety Study“. America Online & The National Cyber Security Alliance. October 2004.

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

Edo period advertising flyer from 1806 for a traditional medicine called Kinseitan

In ancient times the most common form of advertising was “word of mouth”. However, commercial messages and election campaign displays were found in the ruins of Pompeii. Egyptians used papyrus to create sales messages and wall posters. Lost-and-found advertising on papyrus was common in Greece and Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient media advertising form which is present to this day in many parts of Asia, Africa, and South America. For instance, tradition of wall paintings may be traced back to India rock-art paintings that goes back to 4000 BC, see Bhatia 2000: 62-68 on the evolution of wall advertising. As printing developed in the 15th and 16th century, advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England.

These early print ads were used mainly to promote books (which were increasingly affordable) and medicines (which were increasingly sought after as disease ravaged Europe). Quack ads became a problem, which ushered in regulation of advertising content.

As the economy was expanding during the 19th century, the need for advertising grew at the same pace. In America, the classified ads became popular, filling pages of newspapers with small print messages promoting all kinds of goods. The success of this advertising format led to the growth of mail-order advertising. In 1843 the first advertising agency was established by Volney Palmer in Philadelphia. At first the agencies were just brokers for ad space in newspapers, but by the 20th century, advertising agencies started to take over responsibility for the content as well.

The 1960s saw advertising transform into a modern, more scientific approach in which creativity was allowed to shine, producing unexpected messages that made advertisements interesting to read. The Volkswagen ad campaign featuring such headlines as “Think Small” and “Lemon” ushered in the era of modern advertising by promoting a “position” or “unique selling proposition” designed to associate each brand with a specific idea in the reader or viewer’s mind.

Today, advertising is evolving even further, with “guerrilla” promotions that involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message.

A print advertisement for the 1913 issue of the Encyclopædia Britannica

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Video: An advertising history…

 Telemarket Office

Early History

Telemarketing is a registered trademark owned by Nadji Tehrani who founded TeleMarketing Magazine in 1982. Prior to that, the term was used extensively in Bell System communications relating to new uses for the outbound (WATS) and inbound (Toll-Free 800) services introduced in the late 1970s. It is a form of direct marketing where a salesperson uses the telephone to solicit prospective customers to sell products or services.

Categories

There are two major categories of telemarketing: Business-to-Business and Business-to-Consumer.

Within these two categories are two other broad divisions: Lead Generation, where the objective is to obtain information and Sales, where the object is to get someone to buy something.

Within these two categories, there are two other broad categories: Outbound and Inbound. Outbound telemarketing efforts are proactive, with the marketing person making phone calls to prospects or existing customers. Inbound telemarketing efforts are reactive, where the agent processes requests for information or takes orders. The demand is generally created by advertising, publicity or the efforts out outside salespeople.

Telemarketing may be done from a company’s office, a call center or increasingly from someone’s home.

Effective telemarketing programs often involve a two or more call process: The first call (or series of calls) determines the prospect or existing customer’s needs. The final call (or series of calls) motivates the prospect or existing customer to make a purchase.

Links

• American Teleservices Association
• Federal Trade Commission Information about Telemarketing Rules and Scams
• Federal Trade Commission Do Not Call Registry
• List of State Do Not Call Lists
• Congressional Research Service (CRS) Reports regarding Telemarketing
• Telephone Preference Service - UK Do Not Call Registry
• Counterscript for use against telemarketers

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Video: Telemarketing Avenger - Clip #28: Poor Dog