“The Effectiveness of the Internet as a Marketing Tool of Merchandising Companies”
Introduction:
The new age of technology proves that the Internet has become a successful medium of information. With the different improvement and development of this tool, we are able to make use of the advantages of internetworking through rapid exchange of information and important data even from around the world. Some useful components in the Internet are specific virtual locations most commonly know as websites. These are composed of web pages which contain media tools and along with them is the purpose of disseminating important information to different viewers.
There are typically four different types of websites organized by function: a personal website; a government website; a non-profit organization website; and a commercial website. Organizations or even individuals take advantage of the uses of these websites to specifically promote themselves, share ideas, and most especially, provide solutions for a much more effective means of income generation.
It is a fact that most people aren’t aware that behind the Internet is a productive method of money making. It allows businessmen to completely take control of the flow of cash through the means of both product advertising and distribution. One simple question you might have in mind is: “how is it then people can make money out of the advantages they can get from the Internet?” Definitely, the answer won’t be clear unless we are able to gather the sufficient information on the effectiveness of the internet as a tool for marketing.
Statement of the Problem:
Modern merchandising companies are undeniably always searching for the best means of improving their market. Basically, this include: promotional advertisements, which primarily aims to provide information to the public about the quality and usability of their products; and distribution, covering the company’s method of retailing. Though companies have solutions and procedures to come up on a strategy relating the factors mentioned above such as: national television and other media advertisements in terms of promotions; and retail stores as for the distributions, therein arises the problem of higher expense cost. This inevitably allows companies to pay at higher rates for both advertising and distribution expenses and in which are fundamentally unnecessary.
Objectives:
- To prove to the society that internet can be a better way of merchandising companies
- To seek further more information on how can internet be a source of tool in marketing
- Giving information on how others can apply internet as a marketing tool in their lives
- To learn new things in what we have research and what is its purpose
- To finish this research paper and present it well in the class
Scope and limitation
The study will resolve the high-expense Advertising and Distribution of companies just to make their products marketable. This study will be able to provide a certain solution for this problem. However, every study has its own limitation, since this study is concerned regarding the Internet, advertising and distribution of merchandising companies these will be some of the main points that will be stressed and pointed out in the research. Limited as it is, this will show the effectiveness of internet now a days.
Significance of the Study
As the stakes in the Internet economy continue to grow, companies entering or already involved in e-commerce (Making business through the internet) cannot help but wonder how the sales became very prosperous.
On the consumer level, electronic commerce is mostly conducted on the World Wide Web. An individual can go online to purchase anything from books, grocery to expensive items like real estate. Another example will be online banking like online bill payments, buying stocks, transferring funds from one account to another, and initiating wire payment to another country. All these activities can be done with a few keystrokes on the keyboard.
On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business.
From the business viewpoint, Ecommerce is much more cost effective compared to traditional commerce method. This is due to the fact where through Ecommerce, the cost for the middleperson to sell their products can be saved and diverted to another aspect of their business. One example is the giant computer enterprise, Dell, which practice such a method by running most of their business through the internet. Aside from that, marketing on the Internet can achieve a better customer to cost ratio as putting an advertisement on the internet is comparably much cheaper than putting up a roadside banner or filming a television commercial. For Ecommerce, the total overheads needed to run the business is significantly much less compared to the traditional commerce method. The reason due to that is where most of the cost can be reduced in Ecommerce. For example, in running an Ecommerce business, only a head office is needed rather than a head office with a few branches to run the business. In addition to that, most of the cost for staff, maintenance, communications and office rental can be substitute by a single cost, web hosting for the Ecommerce business.
To both the consumers and business, connectivity plays an important part as it is the key factor determining the whole business. From the business point of view, Internet provides better connectivity for its potential customer as their respective website can be accessed virtually from anywhere through Internet. This way, more potential customers can get in touch with the company’s business and thus, eliminating the limits of geographical location. From the customer standpoint, Ecommerce is much more convenient as they can browse through a whole directories of catalogues without any hassle, compare prices between products, buying from another country and on top of that, they can do it while at home or at work, without any necessity to move a single inch from their chair. Besides that, for both consumers and business, Ecommerce proves to be more convenient as online trading has less red tape compared to traditional commerce method.
In global market sense, the appearance of Ecommerce as a pioneer has opened up various windows of opportunities for a variety of other companies and investors. For instance, due to the booming of Ecommerce, more and more resources are being directed into electronic securities, internet facilities, business plans and new technologies. In result of this phenomenon, a variety of new markets have emerged from Ecommerce itself giving a boost to the global market.
