E-commerce or Internet Marketing: an electronic marketing, online marketing

Meaning of E-commerce or Internet Marketing


The buying and selling through Internet is called Internet marketing. Internet is the worldwide computer network. It works as communication media. It helps to have direct contact with every individual customer. All the customers may not be equally profitable. Contact with some customers may need to cut off. So, profitable customers should be selected carefully. Internet helps in it. Similarly, Internet also helps to maintain long term relationship with profitable customers. Contact can be made with stakeholders such as suppliers, intermediaries or middlemen, competitors etc. through Internet. Similarly, Internet also helps in promotion of products, price and distribution including strategic association both at local and global levels. Internet use has become popular for the last few years. Internet marketing becomes more suitable in marketing different products such as cars, and other transport means, share, hotel booking, airways ticket booking, books, tape, magazines, dolls, clothes, equipment including many other things.

Internet marketing is electronic marketing. It helps to have direct contact between producers and customer through electronic channel. They are computer, telephone including other electronic media. Internet marketing is also online shopping. Producer, seller, bank, transportation, hotel and other organizations put descriptive catalogue on Internet or online.

Customers look at the online/Internet selects goods or services given on it and order for delivery. Customers look at the catalogue on personal computers at their homes. Suppose, any customer wants a CD player, she/he looks at all brand CDs and selects it and can buy the desired one through online service.

Internet marketing is also direct marketing. Middlemen do not work in it. The producer contacts the customers directly. Producer contacts customers one by one. In this method, commission that is given to middlemen is saved; as a result, the cost becomes less and the customers get goods at cheap price.

In conclusion, marketing done through Internet is called Internet marketing. It is also called online shopping. It helps to have direct contact between customers and producer through electronic media. As direct contact is made between customers and producer, their relationship becomes durable and strong.

Features of E-commerce or Internet Marketing


Online selling, elimination of middlemen, data depository, enhance promotion, global alliances, good relationship and need of electronic device are the main features of E-commerce or Internet marketing.

1. Online selling


In Internet marketing, products are sold through online. Producer, sellers, bank, hotel, transport and other organizations put catalogues of goods or services on Internet online. Customers look at such catalogues and demand for the goods or services of the brands which ever they want.

2. Elimination of middlemen


In Internet marketing, no middlemen can work. They are not needed. So, they are eliminated by such marketing. Customers and sellers keep direct contact with each other through this electronic media and selling and buying is completed between them. The commission that middlemen would take remains saved. Hence, the cost of the product becomes lesser. As a result, the customers get the goods at less rate of price.

3. Data depository


Internet is a data store. Millions of data can be stored and kept in it. They can be looked at taken out or studied as and when needed. Producer, sellers, bank, hotel, transport, and other organizations keep such information and the customers can easily look at them at their home on Internet.

4. Enhance promotion


Advertisement of goods or services can be put on website. Such advertisement becomes more effective. It increases sale of goods or services.

5. Global alliance


Internet is global computer network. So, it can maintain global strategic alliance in distribution and promotion.

6. Good relationship


Direct contact between producer and customer becomes possible through Internet. Such contact can be made strong and durable. Only profitable customers can be contracted through Internet. And other customers who have become burden can be abandoned.

7. Need of electronic devices


Internet marketing is electronic marketing. This needs computer, telephone and other electronic media. In the lack of such devices, Internet marketing is impossible.
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Direct Marketing: Meaning, Features and Forms of Direct Marketing

Meaning of Direct Marketing


The marketing without intermediaries is called direct marketing. In this type of marketing, the producer himself encourages or motivates the customers to buy goods or services. Direct marketing helps to establish relationship, strengthen, deepen and maintain it. Different writers have defined direct marketing. The important ones have been given as follows:

According to William J. Stanton, Michaela J. Etzel and Bruce J. Walker, "Direct marketing as using advertising to contact consumers who, in turn, purchase products without visiting a retail store."

 

According to Philip Kotler and Gray Armstrong, "Direct marketing is marketing through various advertising media that interact directly with consumers, generally calling for the consumers to make a direct response."

Immediate reaction is expected from customers in direct marketing. Direct mail, catalogue, telephone, television and Internet etc. are widely used in direct marketing. Recently, direct marketing has become wide and popular. Producers, sellers, service companies, nonprofit organizations, catalogue merchants etc. use direct marketing.

In conclusion, the marketing done only through advertisement without help of any middlemen is called direct marketing. In this method, sellers and customers keep direct contact through different media. Advertisement is compulsory in direct marketing. Mail, telephone, television, internet etc. make it more effective.

Features of Direct Marketing

The features of direct marketing are: no middlemen, customer oriented, various forms, direct distribution channel and direct contact between producer and customers etc.

1. No middlemen


In direct marketing system, selling and buying take place keeping direct contact between marketers and customers through different media. So, no middlemen are found in this marketing. Since no middlemen work in it and no commission is given to them, the cost is saved and the customers can get goods at the cheapest price.

2. Customer oriented


In direct marketing, relationship between sellers and customers becomes deep as well as strong. The sellers give emphasis on the wants, desires of each customer. It is one-to-one marketing. As the producers remain in direct contact with customers, they make marketing mix keeping the customers at the center.

3. Forms


The channels which help to conduct direct marketing are taken as its forms. So, there are many forms of direct marketing. They are direct mail, and catalogue marketing, telemarketing, television marketing, Internet marketing, etc. Any of these forms can be direct marketing.

4. Direct channel


Marketing channel becomes direct in direct marketing. In this marketing channel, no middlemen can be found. The producers themselves deliver products to the customers directly. Customers also keep direct contact with producers or distributors through different media. Selling and buying take place directly between them. As the channel becomes short in this marketing, distribution cost also becomes least.

5. Direct contact


There is direct channel in direct marketing. Since no middlemen remain in this form, direct contact is established between sellers and customers. Producers can keep contact with customers one by one. This makes easy for the producers to know about the purchasing power, wants and interest of the customers. Direct ransacking taking place. Distribution cost is also reduced due to direct channel of distribution.

Forms of Direct Marketing


The forms of direct marketing are direct mail and catalogue marketing, telemarketing, television marketing and online shopping. This is made clear by the following figure:-

1. Direct mail and catalogue marketing


a) Direct mail marketing: The main form of direct marketing is direct mail marketing. Products can be delivered to the selected customers through post office, courier, fax, e-mail etc. Defining direct mail marketing, Kotler and Armstrong say, "Direct-mail marketing through single mailings that include letters, ads, samples, foldouts and others sales people on wings sent to prospect on mailing lists." Help of customers' list is taken to prepare mailing list. While sending mail to thousands of customers, it costs more than other channels. However, it has proved completely successful in sending books, magazines, donation, insurance etc. Direct marketing is being widely used to send new products, gifts, clothes, food grains, industrial goods etc.

b) Catalogue marketing: Producers prepare catalogues of different products and send them to selected customers through different channels, especially through mails etc. The customer's order for goods after studying descriptive catalogue.

Defining catalogue marketing Kotler and Armstrong have said, "Direct marketing through catalogue that are mailed to select list of customers or made available in stores." If anything is needed to ask, telephone is used in catalogue marketing.

2. Telemarketing


Using telephone to have contact with customers to sell any product to them directly is called telemarketing. Defining telemarketing, Kotler and Armstrong have said, "Using the telephone to sell directly to customers is telemarketing." Call center is arranged for receiving customers' calls. In this marketing, sufficient information is given to the customers to make selling easy and all information about goods or services is given through telephone. However, telemarketing has also troubled the customers. So, Association of Telemarketing has said, "We want to target people who want to be targeted." Nowadays, cellular phone has become more popular.

3. Television marketing


Using television to sell any product directly to the customers is called television marketing. There are two forms of television marketing. They are Direct Response Advertising and Home Shopping Channel. Magazines, books, CD, tape and other products are suitable for first form and second form is suitable for ornaments, dulls, clothes, equipment, electronics and other products. Quality Value Channel (QV), Home Shopping Network (HSN), Value Club of America etc. are the major Home Shopping Channels of the world.

4. Online shopping


Online shopping is electronic marketing. It is also called Internet marketing. Producer, seller, bank, transport, hotel and other organizations provide descriptive catalogue of products through computer online. Customers look at the online messages in computer and demand for wanted products staying at home. Suppose, if any customer wanted to buy CD player, she/he can look at all brand CD players in computerized catalogues and can select any of them. Defining online shopping, Kotler and Armstrong have said, "Shopping through interactive online computers services, two-way system that link consumers with sellers electronically." Online shopping has remained at its infancy as yet. Online shopping system has not become so successful as expected due to lack of low number membership and less use of computers. But, CompuServe, Prodigy, and American Online are successfully operating.

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Relationship Marketing: Meaning, Levels and Approaches of Relationship Marketing

Meaning of Relationship Marketing


Long-term partnership between marketing expert and customers is called marketing relationship. It maintains satisfactory relationship with customers to earn long term goodwill and maintain it. Creating maintaining and increasing good and strong relationship with customers and stakeholders is relationship marketing.
Relationship marketing includes increasing strong relation with customers, keeping contact and enhancing it. Relationship marketing gives emphasis on establishing valuable relationship and creating delivery network with them rather than personal dealings. Relationship marketing is long term oriented. 


The main objective of relationship marketing is to continue long term delivery to the customers and measure their satisfaction. All the departments of a company should work as a group with marketing to provide services to the customers. Relationship should be maintained with economic, social, technical and legal sectors. It helps to increase the reputation of the company and its products or services. In relationship marketing, marketers and customers work together to identify customers' wants and needs and meet those by updating them in marketing mix.

According to Philip Kotler and Gary Armstrong, "Relationship marketing is the process of creating, maintaining and enhancing strong, valued-laden relationship with customers and stakeholders."

For the last some years, the companies have realized the importance of relationship marketing and are practicing it. Nowadays there are many customers, they are living and spreading all over the world. They want such suppliers who can provide goods at any place, any time and can solve problems and bring improvement in quality of the products living nearby them. Relationship marketing fulfills these wants of the customers.

Levels of Relationship Marketing


Different levels are created while buying goods by the customers. They are: basic level, reactive level, accountable level, proactive level and partnership level.

Levels of Relationship Marketing

1. Basic level


At this level, the seller sells products to the customers. But do not establish relationship with them anyway. They only sell products to them.

2. Reactive level


At this level, the seller of the company sells goods to the customers and encourages them to ask if they have any problems and questions. At this level, the sellers become ready to solve problems of the customers after selling goods.

3. Accountable level


At this level, the seller phones the customers a short time after the sale of check whether the product is meeting the customers' expectations. They solicit for suggestions if any improvement is necessary.

4. Proactive level


At this level, the seller and other employees phone the customers from time to time with suggestions about improved product use. They find out whether the customers are satisfied with the improved products or not. If they are not fully satisfied, they will ask for suggestions and advices.

5. Partnership level


At this level, the company works regularly with the customers to find out methods for delivery of products. At this level, the company takes the customers as partners.

Approaches of Relationship Marketing


Financial benefits, social benefits and structural ties are the approaches of relationship marketing. They are made clearer by the following figures:- 

Approaches of Relationship Marketing

1. Financial benefits


The first approach is to provide financial benefits to the customers to strengthen relationship with them. For example, an airline may give special discount to its regular customers by scheduling regular flights. Hotels may provide special discount to their regular customers. Similarly other business organizations may provide discount or prize to their regular customers. Some organizations provide several facilities to their regular customers by giving them membership of their club. Strong and deep relationship can be established with the customers by giving such financial benefit.

2. Social benefits


The second approach of relationship marketing is social benefits. Relationship with customers can be strengthened by providing social benefits to them. Business company develops personal relationship with the customers for the same purpose by this approach. It confers them social respect and recognition. The company identifies wants and necessities of personal customers, and makes marketing mix accordingly. Besides financial benefits, the social benefit strategy strengthens relationship with customers as well.

3. Structural ties


The other important approach of relationship marketing is structural ties. Its main objective is to involve customers in organizational structure. In order to develop effective relationship with customers, special equipment or marketers supply with special equipment or computer linkage that help them manage their order, payroll and inventory. Electronic Data Interchange (EDI) should be developed. The medicine wholesaler, McKesson Corporation had invested millions of dollars to develop EDI to systematize inventories, orders and shelf space of small pharmacies. That means, a company should even spend much capital to establish strong relations with customers, maintain it and involve them in the structural tie.
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Quality Marketing: Tools and Requirements for Quality Marketing

Meaning of Quality Marketing


The age of today is the age of quality. The producers have become aware to produce quality goods or services in order to get success in competition. Quality is such a factor which increases costs if quality is increased, whereas quality declines if production cost is decreased. So, balance should be maintained in production cost and quality.
For this, the producers should study and understand the consumers' interest, wants, purchasing power and competitors' position carefully.

The sum of features and utilities of any goods is called quality. The quality of goods satisfies the consumers' wants. Reliable service, long lastingness, favorableness, workmanship, aesthetics, composition etc. are the qualities of products. Quality of all goods does not become same. Different goods of different qualities are produced according to the needs, wants, interest and purchasing power of the customers.

Goods of different quality may be produced to meet the same need. Different writers and scholars of marketing have defined quality; the important definitions among them are given as follows:
According to Dr. R. Spriegal, "The quality of a product may be defined as the sum of a number of related characteristics, such as shape, dimensions, composition, strength, workmanship adjustment, finishing, and color."
According to American Society of Quality Control, "Quality is the total of features and characteristics of a product or services that bears on its ability to satisfy stated or implied needs."
Hence, it becomes clear that quality of product is the sum of characteristics inherent in it. Cost, performance, reliability, workmanship, long-lasting, aesthetics etc. are the aspects of quality. Strategic commitment, involvement of employees, quality of products, technology, quantity, methods etc. affect quality of any product.

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Concept of Quality and Total Quality Management (TQM)


To implement the concept of Total Quality Management (TQM) in marketing is called quality marketing. This plays an important role to satisfy customers. Decision on how to implement the decisions taken to increase the quality of product or service should also be taken. Quality of goods is the very important issue being faced by the sum of efforts made by an organization to increase quality of products or services. TQM pays special attention towards satisfying customers. Quality circle, training, customers' views, strategic role, bench marking, statistical tools, technology use etc. increase quality. Strategic commitment, employee involvement, quality materials, new technology, improved method, group effort etc. are the major elements of quality marketing. In the absence of such elements quality marketing becomes impossible.

In conclusion, the sum of characteristics and utility of the goods or services is called quality. To implement the concept of Total Quality Management in marketing is called quality marketing. So, quality marketing makes efforts to increase the quality of the goods or services. It also denotes the quality of goods or services, quality of distribution and distribution channel and quality of after sale services. Quality marketing uses different tools to increase quality of products or services.

Tools for Quality Marketing


Quality marketing is customer oriented concept. It gives priority to customers' satisfaction. Goods or services as wanted and desired by the customers should be made available at right place, at reasonable price and at right time to satisfy the customers. This is the main philosophy of quality marketing. The main tools for quality marketing are as follows:-

1. Quality circle


The quality circle is also called quality control circle. Quality circle is an important tool of marketing. This was developed in Japan in 1960s with a view to providing suggestion to the high level management. Quality circle is the group of employees working in same organization. Such group may consist of 5 to 12 members. This group works regularly to increase quality of the product. As experts of different subjects are involved in such group, it becomes very effective. The group members know the method of solving any problem, methods of using technology and method of performing any work in group with responsibilities. So, the quality circle is the group of employees who get together, hold regular discussions on the quality related issues, find out reasons, recommend solution and take reformative steps. The working process of this group becomes stepwise. Identifying problems, selecting problems, analyzing problems and recommending the right solution is as a whole the working process of quality circle.

2. Training


Responsibility for quality improvement should not be left on any single person or single department. All the persons involved in the organization should be active and involved in it. All the employees from chief executives to the lower level workers should know about the quality of products, and all of them should be committed to achieve it. For this regular training should be given to the employees. Quality is compulsory for success. All the employees should know the necessary conditions for quality and should be given knowledge how it can be achieved. What is quality? Why is it necessary? How can quality be achieved? Who are responsible for maintaining or increasing quality? All such things should be made known to the employees through training.

3. Consumers' ideas


Quality of products or services is for consumers. So, the quality should be as expected by the consumers. They are wise and rational. They know everything about goods or services. Their help becomes very important in developing new product, adding new characteristics to any products. So, their ideas should be collected, analyzed and quality of goods should be produced accordingly. Various ideas of many consumers should be collected and the best idea should be implemented to maintain the quality standard, and make qualitative improvement in any product compared to competitors' products. As a result, the products become marketable.

4. Strategic role


The other important tool of quality marketing is strategic role. The marketers should get the opportunity to play strategic role to make quality goods. If such role is not available, the function of quality remains limited in papers. Quality should be in goods but not in advertisement. The marketers should make goods or services qualitative playing strategic goal.

5. Statistical tools


The measurement of the quality of goods or services is its level and regularity. Quality has different levels. They should not be distorted but be maintained regularly. If high quality goods have been supplied to markets once, quality of the same goods should not be decreased later on. So, statistical tools can be used for giving regularity to the quality. If quality has been regularly maintained, the customers feel satisfied. As a result, organizational success can be achieved.

6. Benchmarking


Benchmarking is the process of learning how other firms do exceptionally high quality things. If any competitor has produced high class goods and has given regularity, the process of learning their method and imitating them is called benchmarking. The concepts of benchmarking are simple and easy. From this good method of others can be learnt and used.

Requirement for Quality Marketing


Quality marketing is the demand of time. Strategic commitment, involvement of employees, quality materials, new technology, improved method and group efforts are needed for quality marketing.

1. Strategic commitment


Strategic commitment is a necessary element of quality marketing. Top level management should be strategically committed to producing quality goods. Such commitment brings changes in the culture of organization to adopt the quality as its goal, not as an ideal. As a result, there comes stability and regularity in the quality of goods or services.

2. Employees' involvement


The other important element of quality marketing is the involvement of employees. Quality is not a responsibility of any single person or department; it is the result of group efforts and commitment of all the employees working in the same organization. So, all the employees should remain effortful to produce quality goods. Considering this fact, the top level management should involve all the employees in the campaign or mission for quality production.

3. Quality materials


Quality cannot be achieved only through involvement of employees and strategic commitment. For this quality materials are also needed. If the input materials are of low quality, final goods also become of low quality. So, quality materials should be used to maintain quality of any products.

4. New technology


New technology is found improved every time. So, it becomes necessary to produce quality goods. The quality of the goods produced by using new and high technology becomes uniform and has reliability. US auto and Electric Firm has invested much amount in developing new technology to enhance quality.

5. Improved method


Quality cannot achieve only strategic commitment, employees' involvement, quality materials and new technology. For this improved method is also needed. The process of production becomes flexible in improved method. It should be easy to change according to the changes of environment.

6. Group effort


Evolvement as well as commitment of all employees becomes essential to increase quality and maintain regularity in quality. A group should be formed involving the persons who are able to solve problem, use new technology, use statistical tools and work in group. This group is called quality control circle. Such group can be formed involving employees from different departments. The group is given special rights and responsibilities for quality control. This group works to maintain quality, promote it and keep regularity. So, group effort is compulsory for quality marketing.
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