Advantages and Disadvantages of Online Marketing - Coursework Example

Digital Marketing Insert Name Insert Institution Introduction Digital marketing is one of the businesses that have faced stiff competition in the world recently. However, many entrepreneurs have embraced it due to its simplicity and divisibility. Many businesses in the world would face severe losses if digital marketing were to disappear. Social sites such as Twitter, Facebook and Gmail have provided great opportunities for many sellers. The rate at which information diffuses is faster, the blogs provide great opportunities for customers to give their feedback concerning the goods, and services offered. This paper aims at discussing the advantages and disadvantages that are involved with digital marketing. It also aims at pointing out how businesses have improved due to involvement of social sites. The paper also discusses how social sites have affected performance of certain companies. Advantages of online marketing Online marketing is considered as the cheapest mode of communication. This is because the amount of money used compared to the target audience is incomparable. The rate at which the information diffuses is also very fast compared to other sources of advertisement (Rhodes, 2012). Online marketing is also very convenient as customers can budget ad buy at their own convenience. The language used is also the one understood by many customers depending on their geographical locations. The risk involved in digital marketing is also minimal as compared to other source of communication. It is also important that digital marketing has reduced the effect of environmental degradation as papers and other synthetics are not used. Klososcky agrees that rate at which feedback is received in digital marketing is faster compared to other sources of marketing (Klososcky, 2012). There is interaction amongst customers and their sellers that are important in establishing good customer care relations with customers. There is also great exposure of goods and services as sites are provided to customers to give their thoughts about the products and services. Through internet marketing, there is also a great possibility to measure and collect data that is important for decision making for any business organization as a means of evaluation. Through digital marketing, the customers are able to have one on one interaction with their clients that creates privacy that lacks in other modes of sale. A great accountability is provided through digital marketing. Digital marketing also provides a wider variety of goods and services only at the click of a mouse (Wilson, 2010, pp. 6-7). Disadvantages of online marketing Many customers cannot enjoy the physical contact of the goods and services they are purchasing before they receive them. Network failures jams within several internet sites can also lead to failure of advertisement through digital marketing. There are also larger risks involved with online marketing due to privacy and theft cases. Many online products may end up being fake and these results in negative impact on the brand companies (Livnat, 2009, pp. 2-3). There are also cases when many customers lose great amount of money during the transactions. Risks of failure or late delivery are also some of the disadvantages that are involved with digital marketing. Many businesses also have to invest more cash in maintenance costs due to the rapid changes in technology and due to rapid competition. Digital marketing requires higher transparency on the prices. For this reason, there has been stiff competition amongst companies and this has led to losses. This has also led to worldwide competition due to globalization. Planning and implementing digital marketing Businesses can and implement their marketing tools through several ways that includes the following ways; banner placement is a process through which a banner is designed and posted in the internet especially in social sites. Another method involves the internet search engine that aims at searching for information within the search engines like Google and Yahoo. Search engine optimization is also another process through which planning and implementation of digital marketing is implemented. E-mail newsletters are also another way through which digital marketing is taking place and how it is implemented. Link building and article submission to the internet are just some of the many ways through which internet marketing and planning take s place. There are also circumstances where affiliate sales take place where another person designs a product while the other one is involved in sale. Online direct selling is also another possible way through which businesses have been involved in planning and implementing their digital marketing strategies. There are services such as pay per click and online public relations that have helped improve digital marketing. Selected organizations In the year 1993, Michael Dell introduced a 3C principle that aimed at accelerating their sales through the internet (Yew, 2012). The first C is content. Dell believes that by introducing the content in form of journal data or any form of content online then it created an opportunity to note where the potential was lying. The second C he talked about was about the commerce. He believes that the larger the number of people is involved in any business the greater the potential and success. Finally, Dell identified the community as an important aspect in any success of an organization. He believes in creating a community that is transformational and linking. He believes that the community has the advantages of velocity, efficiency, and better customer experience. Three years after Dell introduced online sales, the company made $ 1 million per day through online sales. Samsung Company has been rated the best producer of smart phone overtaking Apple incorporation according to the latest reports. Their production of Samsung Galaxy S 3 has made it the best producer of smart phones in the world. Samsung products are smartly advertised mostly through the televisions and the internet. The Samsung galaxy S 3 is a common image especially during this time when the Olympics competitions have just ended. The images of the phone have been displayed on billboards all over the world ensuring that the world is well familiar with the product. The phone has been used in advertising some of the events that just took place in the just concluded London Olympics 2012 (Wales, 2012). The phone is also widely advertised through the internet especially through social sites like Facebook and Twitter. The introduction of sales through the internet has led to increased sales for the company. According to New York gazette the Samsung Company has extended its lead over apple due to the recent release of galaxy smart phones. The reporters argued that Samsung Company released their phones before Apple upgraded their smart phones (Jesdanum, 2012, p. 12). According to the journal, Samsung shipped over 50.2 million phones over the second quarter of the annual sales and increased their share capital from 17% to 33%. Its competitor Apple incorporation sold 26 million I phones falling slightly from 19% to 17% during the April-June quarter. Besides having, the galaxy smart phone for several months the Company also improved its sales on other products due to the release of the smart phone and benefited by increased sales. Comparison between the two companies The approaches used by these companies are varied in terms of the products and services. While Samsung is a company dealing with a wider range of electronic gadgets Dell Company concentrates in the production of computers and printers. Samsung has different approaches that include billboard and banner attachment when it comes to their digital marketing while Dell Company deals mostly with one-on-one customer relations online. Those are two different strategies but they work best for respective Companies. Dell is reportedly the second largest producer of PC computers in the world after Compaq. The popularity of both companies has made them also increase their publicity through all forms of internet advertisement Conclusion In conclusion, the advantages of digital marketing have led to rapid innovation and inventions. Through social sites, many people are able to obtain quality information concerning the products and service of their choices. They are also able to make comparison while still online. Several risks are involved through digital marketing such as sale of fake products and theft cases. Lack of privacy is also a problem faced by many online shoppers. However, the flexibility and divisibility involved with online marketing is impressing. The costs of products and services are also general and this has led to increased competition therefore leading to advantages on the part of the buyer. Through support of different data and journals, internet marketing has seen the success of companies such as Dell, Samsung, Apple, Nokia, Sony, LG, and many other companies in the world. Social sits such as Twitter, Facebook and LinkedIn are also some of the most companies that have provided satisfactory services to online marketing. Powerful search engines like Google and Yahoo cannot also miss to be mentioned for their great contribution to online marketing. References Jesdanum, A. (2012). Samsung extends leads in Smart phone. Journalgazzete.net, 1. Klososcky, S. (2012, February 12). Future Internet Activities. Retrieved 2012, from Klososcky Articles: www.klososckyarticles.com Livnat, F. (2009). Advanages and Disadvantages of online marketing. Articlebase, 2 of 70. Rhodes, S. (2012, January 7). Personal Finance and Development. Retrieved 2012, from Advantages and Disadvantages of Internet Marketing: www.thebestway2invest.com Wales, B. (2012, July 17). London olympics 2012. Retrieved 2012, from Samsung Galaxy S III: www.galxaxysiii.com Wilson, L. (2010). I Phone Applications Development. The fruitful Field, 6-7. Yew, C. (2012, February 12). Laedership in Organizations. Retrieved 2012, from Leadership in Organizations: www.slideshare.net Read More