Overview

Internet marketing is an effective method to promote and sell a product or service by focusing on a target market at a rate usually less costly than promoting to a broad audience as is common in old marketing.  The basics of marketing includes identifying your target market, understanding the marketing mix, focusing on variables when designing marketing materials, and learning the difference between outbound and inbound marketing.

Among the topics we shall consider are:

≈     Target Market

≈     The Marketing Mix

≈     Developing a Promotion Strategy

≈     Outbound Marketing

≈     Inbound Marketing

Definition

According to Merriam-Webster’s Dictionary, marketing is “the process or technique of promoting, selling, and distributing a product or service”.  Marketing encompasses advertising, promotions, public relations, and sales (i.e. salesman, telemarketing).

As defined in Wikipedia, “Internet marketing, also referred to as i-marketing, web marketing, online marketing, or eMarketing, is the marketing of products or services over the Internet”.  In general, Internet marketing is less expensive than traditional marketing such as print, television, radio, and billboard advertising when considering cost per intended market reach.

Target Market

It’s important to define the customers your business targets.  Identifying characteristics of your target customers will help better design your product or service, distribution, and marketing. 

There are multiple things to consider when defining a target market. Think about your market and what they have in common.  For example, if your product is a Bible designed especially for children of color, it might be better to identify your target market as parents and children of color who attend church.  Instead of marketing to all parents or to all parents of color, focusing on the aforementioned niche market will likely have a better return on marketing investments.

Three common traits to consider when defining a target market are:

·        Geography – Where is the market based?  Do the customers live in a particular state or Region?  Are they on a specific side of town, in the suburbs, or inner city?

·        Demographics – Are there common demographic characteristics of the target market?  Perhaps the customers are of a common culture, race, income range, or education level.

·        Psychographic segmentation – What lifestyle preferences are similar in the market?  For example, are the customers athletic or sedentary?  Do they enjoy the arts?  Are they business-focused?  Family-oriented?

Be sure to research your customers to clearly identify who they are before developing a marketing plan.  This will help you determine the best way to reach your customers.  Consider all media your target market frequently encounters or visits.  Research each medium.  Identify methods of communicating with your market through each medium.

The Marketing Mix

The core of marketing is often agreed to be the Five P’s of Marketing, also known as the Marketing Mix.  They are variables that marketing managers can control in order to best satisfy customers in the target market.

1.      Product – The product or service offered to the customer.  It also refers to aspects such as appearance, packaging, benefits, function, service, warranty, etc.

2.      Price – The price the customer pays for the product or service.  Pricing strategies should consider profit margin, competitors’ prices, price ranges customers are willing to pay, financing options, etc.

3.      Place (or Distribution) – The method of getting the product/service to your target market.

4.      Promotion – The communication of your product/service and its benefits to a market.  Includes advertising and public relations.

5.      People – The customer service provided to customers.

Developing a Promotion Strategy

A key principle that should help develop a promotion strategy is AIDA: Attention, Interest, Desire, Action.  Focusing on AIDA will help you when designing marketing materials and their content.

·        Attention (or Awareness): materials or tools plus language must attract potential customers’ attention.

·        Interest: increase interest by demonstrating advantages, benefits and/or features

·        Desire: pique customers’ desire for the product or service by demonstrating how it will add value and satisfy wants or needs.

·        Action: lead customers to action of purchasing

When creating internet marketing, consider how each aspect of your marketing will build customers’ attention, interest, desire and action.

Outbound Marketing

With outbound marketing, the business pushes a message out to an audience to capture attention and gain a sale.  Examples of outbound marketing include:

• Inside sales and cold calling

• Telemarketing

• Tradeshows

• Seminars

• Advertising (including print, television, radio and billboard)

• Direct mail/email

• E-blasts to purchased lists

Outbound marketing typically reaches a broad audience and is considered successful if the response is 1-3% of the total reach.

Inbound Marketing

With inbound marketing, customers find your website, product, or service when researching or shopping in the industry.

People are much more in control of what information they receive and how they receive it.

Examples of inbound marketing include:

• Search engine marketing (SEM )

• Search engine optimization (SEO)

• Blogging and leveraging the blogosphere  

• Banner ads on specific websites

• Affiliate  marketing

• Social media marketing

• Targeted landing pages

• E-mail marketing to target market

• Web 2.0 strategies

• Pay-per-click (PPC) advertising

• Buzz marketing

• Conversion tools

• Sophisticated analytics

• Lead generation

To be found by qualified prospects today, your company must be at the top of search engine results pages, linked-to from popular blogs and talked-about on social media services.  An online social network is a great venue to increase interest in a product or service by providing range to discuss features and benefits with an audience of common interest in the industry. 

Conclusion

The basics of marketing are important to understand when developing an Internet marketing strategy.  Although there are multiple forms of Internet marketing, in order to effectively create content and materials that will sell a product or service, you should:

·        define your target market,

·        identify your Five P’s, and

·        design promotions to capture your customers’ attention, interest, desire and action.