Online marketing Essay
Online marketing has become one of the most lucrative advertising industries in the world. Ever since the online boom came about, the market has soared unbelievably at a fascinating pace. With the event of Google just being around for over five years, it is today one of the biggest online advertising companies in the world with revenues exceeding billions of dollars. With the majority of business in the USA, UK, Europe and major countries in Asia taking their companies online, online sales are all set to takeover the retail industry.
Shopping today has become a totally different experience to what someone would have experienced ten years ago. Huge sectors, if not all, the retail business, but also the wholesale and manufacturing industry now has an online presence. With fewer overheads, minimal rents compared to high street hot spot rents, going online always looked promising. Web promotion is becoming easier as more and more people are connecting to the internet; with thousands of new users getting connected everyday, the market just keep growing with no end.
The initial risk period is now over for people who were skeptical to use their credit cards online of the fear of becoming a victim of online
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New companies have emerged into multi million dollar business through online selling. The likes of eBay, Amazon and kelkoo have become online giants within a very short period of time. However, online businesses do have their limitations. Normally these businesses are limited to items that cannot be easily transported or delivered. The fresh fruits and vegetables industry seemingly seems to be unaffected in a major way from the online retailers as consumers still prefer to touch and feel a product before buying.
For these same reasons, shoes, cloths, perfumes and cosmetics, unless from high street brand names, would find it difficult to make a big impact online. Cosmetics like Estee Lauder`s advanced night repair concentrate, which is a new product name in the cosmetics online industry may need to struggle somewhat before the market appreciates their products online. Therefore, as part of a web-marketing strategy, the company could distribute stock into retail shops initially to get their brand into the public domain. Once the brand gains market recognition, then the brand should be able to launch their online campaign.
However, both campaigns could be launched side by side so that their brand names take a prominent position in the public sector with their name is being repeatedly displayed in front of the consumers online and in the high streets. Events can be arranged for these cosmetics to be tested for free so people can experience these products and become permanent customers for them. Such events are normally held in busy shopping centers in conjunction with huge retail cosmetic stores. This way the product shall get introduced and the company can build rapport with their customers.
It is only when customers see a certain products in high street stores or hear of peoples experience with certain products does the brand start being noticed and then eventually shall become something someone would search for online. Even though online adverts can be run, but if the consumers have never heard of the products or the company, sales growth would be limited. But since this is a very well known cosmetic company with hundreds of their products in high street stores, the company will have huge amounts of loyal customers to themselves who trust their brand and who have bought from then in the past.
Due to the high reputation of the company, launching an online product for them would not be a major concern, but since this is the first time they have launched any of their products online, they would need to be careful of their marketing strategies. Since most of their customers in the past have always walked into high street stores to purchase products, they would need to make sure their customers are compatible with the online purchasing. Make sure they are comfortable with their website and are satisfied with the customer services available to them online.
But since there is a revolution taking place in the retailing industry, the business could not avoid going online as trends in the market suggest that in a few years time, majority of retailing would be done online. The amount of shoppers in high streets will tend to drop, resulting in the online business to get busier than ever before. Since the company is well recognized in the public domain, all online web promotion would most likely be successful.
Since it would also be for the first time consumers would get to see the company online for the first time, compared to the conventional type of advertising is had been doing before, it may generate a lot more interest. There are many web promotion techniques the company may utilize. Affiliate programs are becoming an ever increasing popular method of generating sales through affiliate websites. They could advertise across all major cosmetic websites via their own affiliate program.
They could make their own rss files and have their adverts advertised on participating websites. In return, the agreeing websites would get revenue either by clicks or commission according to the amount of sales they generate. This is normally tracked with cookies, which enables the affiliate programs to track where each browser has come from on which page they landed on. Most affiliate programs offer 30-60 days cookie life to browsers, to allow them to buy their products for up to sixty days and the participating website would receive the rewards.
This method of web promotion is becoming increasingly popular as it is a result focused marketing strategy with no initial lay out or costs. Getting yourselves on the relevant sites would be the only issue, but since these manufactures are reputable and would have a huge list of suppliers to whom they supply to, they could potentially get themselves on every supplier’s website instantly. Even though their products are advertising their own website, but the participating websites would get their commission which is why they would be more than happy to advertise the companies products.
These adverts can be run in text-link format or in the form of images, and images with description as a lot of the Amazon affiliate programs work. There are agents in the online industry that takes care of all these affiliate programs who have a huge list of clients who are willing to advertise affiliate programs. Other online marketing strategies would include advertising on the major search engines, the likes of Google, Yahoo, Msn, Lycos and Ask Jeeves.
Even though there are thousands of search engines, but there are truly only 3 major market leaders out of which Google is the one dominating. Google runs adwords campaigns where you can advertise your site, by bidding on the amount you are willing to pay per click to Google. This method can become expensive to maintain, but definitely does get the results and will get the website notices. With millions of people browsing the internet, if top dollar is paid, it would be possible to get on the first page instantly.
But efficient and closely monitored campaigns do always pay off. Major sites like MSN, Amazon, eBay etc would charge enormous amounts of money to advertise on their noticeable first pages, and email log in pages to get maximum exposure. But a mix of marketing campaigns is necessary to have the brand noticed at all levels of the market. With conventional media mediums now becoming a dying breed there does not seem to be much point for advertisers to advertise in newspaper etc, due to the fact, that all their reader are now online where these papers are readily available.
Less people are now turning newspaper pages as they can find the news they want to read, online whenever they want to without having to go out and pay for newspapers. According to journalism. org, news magazines had pinned their hopes on 2006 that their viewers would bounce back and revert to the conventional way of receiving their daily news, including all TV media companies. The only was seen forward for these companies if they can inter-exchange with their readers valuable knowledge and experiences between themselves, i. e. just what a blog does.
These days’ blogs are becoming increasingly popular place to share information where people discuss different companies’ products and give their general experiences. CBS and Viacom hove recently back tracked their youtube. com coverage in order to protect their viewers to the TV screen, and also the issue of who would control the content and the ability of news to generate revenue. The TV, still the only realistic contender in the fight for media coverage has also had blow from the redefining rules of “live” and non live programs as rights are sold for “live” programs.
It has now be redefined that any live event is stated to be telecast “live” if it is telecasted within 25 minutes of the event taking place, otherwise it will be classified as “not live”. So the TV in essence has now been reduced to its 25 minutes glory before the internet hijacks the news and the rest goes down into history. With more and more companies being forced to take a huge chunk of their marketing budget online, the conventional marketing agency’s cash is drying up, and fast.
The internet just seems to have a lot to offer compared to the traditional and interactive agencies, which still need each other to promote one another. But since the industry is undergoing an internal revolution, agencies need to change their perspective of marketing techniques to realize the true potential of the returns web marketing can give them and their clients. The only edge traditional advertising has at the moment is they are regulated of the contents of the adds they can display whereas online marketing is not regulated by any international body to make sure the content is reasonable for everyone to view.
In the case for cosmetics, they probably still have a few years of life left in the traditional high streets and conventional media as women have yet to completely accept the internet as their shopping trolley. But eventually, the women are coming round and more and more of them are flocking online to buy their cosmetics. Which is why it still a good idea not to completely abandon the conventional way of advertising through newspapers and stocking the products in high street shops. However, the battle has not yet been completely won by the online giants, as change always requires time, and traditional people do not like change.
Even thought the market has drastically changed over a relatively short period of time, there always be a certain sector of the market who would always stick to its traditional values of shopping. But even in the online industry, there will always be the battle to the top of the search engine listings, with major advertising spots on the major sites being snatched up by big brands, smaller business are having to rely on natural listing web promotion to have their site receive the amount of traffic to make their online venture a success.
Major online players are contemplating all the time of how to generate the traffic and come up with new means of attracting browsers to them. A similar effort has been put in by Yahoo who has researched the top 100 brands. The company intends to make websites, blogs, comparison sites and ranking sites with forums, hoping the traffic would go where the brands information is and visa versa.
Domination of online shopping seems to be inevitable, and would most defiantly be the way the future shapes is shopping trends. Estee Lauder`s may have a few more years to successfully keep the growing at the pace it is off line, and in the high street. But going online is the directions the customers are going, and so Estee Lauder`s is most definitely following the crowd and should now go after its share of the pie on the internet.
http://www. brandsizzle. com/blog/traditional_media/index. html