The web brings new features and advantages in comparison with marketing based on traditional technologies. Evaluating the benefits of online tools is not the best idea – with the rise of the internet marketing has become way more sophisticated. Here’s a selection of the core advantages according to HTP Digital’s Matthew Brown, digital marketing Manchester professional, specialising in building online promotion strategies.
Moving the key role from producers to consumers
One of the most fundamental qualities, introduced by the Internet is a key role of the transition from producers to consumers. The Internet has made an opportunity to attract the attention of new client in just tens of seconds a reality. However, at the same time it has enabled the same user to move to any of the competitors in a few clicks. In such a situation the attention of buyers becomes the greatest value, and establishing relationships with customers mainly represent the most important capital of the companies.
Globalization of activities and reduction of transaction costs
Internet has significantly changed the spatial and temporal scales of conducting commerce. It is a global medium of communication that doesn’t have any territorial limits, while the cost of access to information does not depend on the distance from it, as opposed to traditional media, where this dependence is directly proportional. Thus, e-commerce allows even the smallest suppliers to reach global presence and do business on a global scale. Accordingly, customers also have the opportunity to choose from all the global potential suppliers that offer the required products or services regardless of geographic location. The distance between the seller and the buyer is important only in terms of transportation costs.
The time scale in the Internet environment is also significantly different from the usual one. High efficiency communicative properties of the Internet makes it possible to reduce the time to find partners, decision-making, execution of transactions, new product development, and so on. The information and services available on the Internet around the clock. In addition, the communication characteristics have high flexibility to easily make changes to the information provided, and, thereby, to maintain its relevance, without time delay and costs of distribution.
These effects also result in a significant reduction in transaction costs, i.e. the costs associated with establishing and maintaining communication between the company, its customers and suppliers. Thus the cost of communications compared to traditional means becomes minimum, and their functionality and scalability are significantly increased.
Personalization of interaction
Using the tools of electronic interaction, companies can obtain detailed information about individual customer requests and automatically deliver products and services tailored to individual requirements. One simple example is the individual layout of a web-site for customers from different regions, activated basing on user’s IP address.
A decrease in transformation costs
The transformation costs decrease can be achieved by selecting the optimal structure of the product portfolio, reduction of time to develop and introduce new products, reasonable pricing policy, reducing the number of intermediaries, the cost of sales, and so on. For example, one way to reduce transformation costs might be a reduction in distribution channels of the goods. The reason for the reduction of distribution channels is the ability for companies to take over functions traditionally performed by intermediaries, as the Internet has the ability to interact more efficiently with customers and at the same time allows you to keep track of customer information.