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How We Use Both Digital & Traditional Marketing - Internet Vs. Traditional Marketing Communications

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Internet Vs. Traditional Marketing Communications

Basis of difference

Traditional Marketing

Digital /Internet Marketing

1. Direction of communication

Uni-directional communication(company communicates with its customers about its products or services in one direction way).

Bi-directional communication(the business can communicate with customers and customers can ask queries or make suggestions to the business as well.

2. Medium of Communication

The TV ad, billboard, newspaper,   etc.

Social media websites, chats, apps, e-mail, etc.

3. Campaign

Time-consuming for preparation, designing, launching, etc.

Rapid campaign and can be launched within no time

4. Reach

Best way to reach a local audience

An effective way to reach the local audience as well as international customers also.

 

How We Use Both Digital & Traditional Marketing

Our traditional marketing methods support our digital marketing efforts. The two do not operate in exclusion from each other. But we only use hard copy marketing materials to further strengthen a relationship with a contact, referral partner, or client. We don’t invest in television or radio ads, for example, but we will give brochures to someone who is interested in our services. Rather than taking an all-or-nothing approach, it appears that a multi-channel approach that leverages the unique benefits of paper with the convenience and accessibility of digital will perform best.

Internet Microenvironment

The environment under which organization functions determines how it will conduct its business. Organizations have to constantly monitor and appraise the external business environment. Organizations have to make changes in their operations in accordance with the environment to be profitable and effective. Therefore, understanding the business environment is important before developing any marketing strategy.

Specific forces such as a marketplace, customers, organization, etc. that directly affect the organization are referred to as micro-environment.

The internet has made a direct impact on the micro-environment of the organization.

Market Place

The marketplace for an organization includes interaction between all the elements of the micro-environment. There are five forces that impact organizations in the marketplace. The impact of the internet on the five forces is as follows:

Bargaining Power of Customers: with the advent of the internet, customers have wider choices of products than before. The increase in competition has reduced the price level as customers demand more transparency in operations. Thus the bargaining power of customers has increased.

Bargaining Power of Suppliers: again with wider choice due to the internet. The bargaining power of the supplier has gone down

Threats of substitutes: the internet has enabled the quicker introduction of products and services. The organization must carefully observe the introduction of substitutes in the market to avoid losing market share.

Barriers to entry: the internet has substantially reduced establishment costs, especially in the services industry. Therefore, the organization has to carefully observe the movement of the new entrants in the market.

Competition: the internet has started the trend of faster commoditization of products. Thus companies need to find new ways through which they can differentiate themselves from the competition.

Customers

An organization’s success is dependent on a strong customer base. Therefore, customer needs and requirements require a better understanding from the organization. A qualitative and quantitative analysis needs to be developed by the company to track consumer behavior and create more consumer insights. These consumer insights can be used by marketing groups to develop specific strategies.

Companies are using demand analysis to understand and determine the potential of the new business proposition among customers. Companies also deploy qualitative analysis to understand the perception of a consumer towards new products and services.

After assessing demand and perception among consumers for the products and services, companies develop marketing communication to target specific potential customers and convert them to actual customers. This conversion marketing technique helps companies improve their customer base.

Online sites track the way consumer navigates to reach a particular destination or buying decision. This helps companies to design better websites. The internet search engines are the first stop for many consumers to begin searching for a particular product or service. Hence it is important to understand the phrases or sentences consumers are using to reach a particular product or service.

Companies divide consumers into a particular group or segment based upon their demographics and psychographics.

Online Buying Behavior

It is very important for an organization to understand how the internet works in a multiple-channel scenario. Thus, companies develop different models to understand online buying behavior.

Companies have started creating personas that summarize the customer needs, requirements, and environment based on their internet usage. Based on this persona, companies develop a customer scenario. This customer scenario is a series of tasks or paths taken to come at the desired buying decision.

This customer scenario is part of the overall buying experience and it involves multiple channel partners. Therefore multi-channel strategies have to be built in assessing overall customer online buying behavior.

Competitors

Online business is dynamic in nature. Therefore, it is important for organizations to monitor the usage of the internet by the competition. The internet is the new medium through which companies undertake the task of customer retention and acquisition.

This dynamism has introduced new services and innovative marketing mix more frequently compared to traditional marketing techniques. Benchmarking also has become dynamic and cannot be considered one of, activity, but has to be continuous.

The strategies of the traditional competitors are well known. However, with the internet and globalization, new entrants are always posing constant competition to the organization.

Companies for benchmarking should analyze competitors’ web site, identify the current trends and keep an eye on future trends.

Suppliers

Total customer satisfaction is the key to developing a long and fruitful relationship with consumers. Therefore, it becomes important for the organization to monitor suppliers, as they do affect the quality of experience for customers.

Intermediaries

Marketing intermediaries are companies that help the organization sell, promote and distribute products and services in the market. For internet marketing, there are online intermediary websites. These intermediary websites work as a platform between consumers and business suppliers. Online social networks also act as an intermediary. They provide a platform that facilitates collaboration and exchange between various individuals.

Companies need to maintain a constant watch on the internet environment. This will help organizations respond to the ever-changing and evolving internet microenvironment.

 

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