KEY REFORMS AND ALTERNATIVE PATHWAYS

According to Mahadevan, all business on the Internet falls into one of three broad market structures: portals, market makers, and product/service providers. B2B portals primarily provide members of an industry with a sense of community by providing them with information about products, services, and general industry information. They are also used as focal points to channel traffic into the websites of product/service providers in the designated industry. Market makers also offer customers a sense of community and industry information, but they differ from portals in that they participate in the facilitation of business transactions between the buyer and supplier. This market structure can provide an industry with cost reductions by reducing product search costs and transaction costs. Product/service providers are suppliers that sell to their customers directly via the Internet. Once a company has weighed the pros and cons of taking their business online, they must then decide which direction would be best for their company in terms of implementing an e-business model.

Unfortunately, there is no unique, successful business model for companies that perform electronic business. Just as in traditional business, the model depends on the products and services that the company offers, the market structure, etc. It is also important to understand exactly what a business model is and what the company hopes to accomplish with the model.

A good business model is essential to every successful organization, whether it is a new venture or an established player. Success online, just as in traditional business, involves adding value to the firm as well as adding value to the customer. A good business model

should tell who the customer is, what the customer values, how the business makes money, and how value is delivered to the customer at an appropriate cost. All new business models are variations on the generic value chain which underlies all businesses. They consist of two parts; activities associated with making something, and activities associated with selling something. A new business model involves either the design of a new product or a process innovation, a better way of making, selling, or distributing an already proven product or service In terms of business-to-business e-business models, the process innovation models are the way that companies will more commonly use the Internet. It is important for companies to understand that their business model does not have to be set in stone.

SELF ASSESSMENT EXERCISE

Discuss the advantages and disadvantages of Traditional Marketing 4.0 CONCLUSION

The advent of the Internet has opened several doors of opportunities in business, even in marketing. The Internet has made the act of marketing to be more dynamic and competitive.

The playing field in marketing seems to have levelled and opening the global market to several players. The concept will continue to thrive and expand so long there are growing demands for goods and services.

5.0 SUMMARY

i. Electronic marketing, also referred to as online marketing, Internet advertising, Internet marketing, is the marketing of products or services over the Internet.

ii. Internet marketing ties together creative and technical aspects of the Internet, including design, development, advertising, and sales. Internet marketing methods and strategies encompass a wide range of services.

iii. Internet marketing is associated with several business models.

iv. Internet marketing differs from magazine advertisements, where the goal is to appeal to the projected demographic of the periodical.

v. Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience.

vi. Internet marketing requires customers to use newer technologies rather than traditional media. Low-speed Internet connections are another barrier.

vii. Information security is important both to companies and consumers that participate in online business. Many consumers are hesitant to purchase items over the Internet because they do not trust that their personal information will remain private.

viii. Internet marketing has had a large impact on several previously retail-oriented industries including music, film, pharmaceuticals, banking, flea markets, as well as the advertising industry itself.

ix. According to Mahadevan, all business on the Internet falls into one of three broad market structures: portals, market makers, and product/service providers.

x. The Internet economy is a broader concept than e-commerce and e-business.

6.0 TUTOR-MARKED ASSIGNMENT

List ten methods and strategies associated with Internet marketing.

7.0 REFERENCES/FURTHER READINGS

Story, Louise and comScore. (2008) “They Know More Than You Think” (JPEG). in Story, Louise. “To Aim Ads, Web Is Keeping Closer Eye on You”, The New York Times, The New York Times Company.

Businessweek (2006)– Advertising Goes off the Radio

[http://news.bbc.co.uk/2/hi/business/7329886.stm

Ian Mohr Daily Variety (2006). “Movie Props on the Block: Mouse to Auction Miramax Leftovers.” Reed Business Information February 27, 2006

James. D. (2007) People Magazine Time, Inc. February 24, 2007 “Bid on Dreamgirls Costumes for Charity”. eMarketer – Online Ad Spending to Total $19.5 Billion in 2007 (2007-2-28).

The Register (2006) Internet advertising shoots past estimates. Internet Advertising Bureau – Online Adspend

PricewaterhouseCoopers (2007) Report on U.S. Internet marketing spend totaled $16.9 billion in 2006” (Accessed 18-June-2007).

Spartan Internet Consulting (2008) – Political Performance Index (SIPP) (Accessed 28-June-2008). “Center for Responsive Politives Fundraising Profile Barack Obama”.

Okereke. G.C. (2008) MBE 704 Internet Marketing. National Open University of Nigeria;

Lagos. ISBN: 978-058-318-1

UNIT 2: E-MARKET OPPORTUNITY ANALYSIS