0% found this document useful (0 votes)
10 views16 pages

E Commerce Unit II

Download as docx, pdf, or txt
Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1/ 16

UNIT II

What Is Traditional Marketing?

Traditional marketing is the process of fulfilling the target audience’s needs


using offline channels and making a profit out of it.

In simpler terms, traditional marketing refers to the satisfaction of needs and


wants for consumers via those marketing channels that existed before
individuals had access to modern digital platforms.

It involves fulfilling the 4ps of marketing without making use of digital


marketing channels. This traditional marketing mix includes:

 Building a product that operates and fulfils customers’ demands online.


For example, a washing machine.
 Using a pricing strategy that’s not dependent on online channels.
 Using offline channels of distribution to reach out to the customers.
 Promoting the product using offline channels like TV, radio,
newspapers, etc.
Traditional marketing encompasses a wide range of advertising and marketing
strategies. It was and is the most well-known type of marketing that customers
see every day.

What are the Features of Traditional Marketing?

Traditional marketing predominated until the 1990s when the internet began to
take off. It is still considered a viable method for marketing with a core focus on
the product offering. Here are the features of traditional marketing:

 Offline Channels: The traditional marketing mix involves techniques,


strategies, and tools that don’t involve digital channels at all. The product,
price, place, and promotion are strategised and executed using offline
channels.
 Less Segmentation: Traditional marketing delivers the message to the
masses. The traditional marketing strategies can’t micro-segment the
target audience based on of age, sex, income, behaviour etc. 
 Strong Relationships: Traditional marketing channels help create
credibility and build relations among the parties through physical contact,
question answering, suggestions, etc. Moreover, the local audience trust
traditional marketing efforts more than digital marketing efforts.

 Better value: Traditional marketing also involves physical touch where


the brand connects with the customers through salespeople that lead to
better value creation and more loyalty on the part of the customers.

 More Credible: Since it’s an old form of marketing, customers consider


it more credible than digital marketing and often make important
decisions after being triggered by traditional marketing activities.

 Captures a Larger Audience: Traditional marketing strategies ensure to


reach a bigger group of people from various categories. Because these
marketing strategies are extremely individualised, marketing media
sources such as direct mailer tactics provide excellent client engagements.

The Importance of Traditional Marketing

Traditional marketing is highly important even in the digital


marketing age. Although digital marketing has taken over the world, marketers
cannot completely neglect traditional media channels like TV, radio and
newspapers to promote their business. It is considered a vital part of the
promotional mix.

Today, there are still niches, places, locations, etc. where digital marketing
doesn’t work. For example, rural areas or places where the internet is rare. In
such cases, people are well aware of the traditional marketing techniques that
they have seen in their lives.

Moreover, traditional marketing often plays a very important role in marketing


to the local audiences as they are much more likely to trust traditional methods
than digital marketing.

Even pricey items and complex products require marketers to use traditional
marketing as it is more effective than digital marketing in most cases.
Traditional Marketing Channels

Traditional marketing is not extinct in the age of digital marketing. Cold calling
is still a popular way to create leads and revenue today. Even as the digital
revolution continues, traditional marketing is far from obsolete, and linked firms
are thriving as well. Traditional marketing approaches continue to be a valuable
secret weapon for interactive, face-to-face, and expert marketing. Below is a list
of various traditional marketing channels that have an outstanding ROI even
today.

1. OOH Marketing: Out-of-home marketing, often referred to as OOH, is a


marketing and advertising method used to communicate with customers
or audiences outside of their homes and businesses. That’s in the form of
visual advertising media. Traditionally, out-of-home marketing relies
more on images than words to communicate a message to the audience.
In addition to billboards, signs, and street furniture such as benches and
bus shelters, this advertising method also incorporates mediums such as
stadiums, retail malls, and cinemas.

2. Broadcasting: Broadcasting refers to the act of transmitting information


or programmes through mediums such as radio and television. Businesses
may reach a significant amount of people quickly by using such broadcast
marketing methods like television ads and radio to increase brand
awareness. Television allows marketers and advertisers to create more
compelling commercials since it allows for the visual presentation of
items and demonstrations of their functionality. The radio broadcast can
help brands reach a local audience in a more effective way than other
mediums.

3. Print Media: Print media marketing comprises advertising products and


services through newspapers, magazines, and other print media mediums
such as books and journals. As a mass-marketing approach, printed
advertisements allow firms to reach significant individuals, irrespective
of how keen they are on the product or service. It is also used to target
specific groups of people, such as magazines for women or fashion.

4. Direct Mail: Direct mail refers to commercial literature that is sent to


potential clients by postal mail. Different types of direct-mail marketing
methods such as brochures, letters, postcards, catalogues, flyers, and
other printed material are distributed directly to customers to build
awareness about various products. Information is passed on to a specified
target audience or market in this style of marketing. Direct-mail
marketing is a great tool to have at one’s disposal to generate new leads
and increase revenue.

5. Telemarketing: Different businesses hire sales employees to make phone


calls for promotional or marketing activities in telemarketing. It is often
referred to as cold calling. A cold call is one that involves contacting,
informing, and persuading potential consumers over the phone. Due to its
many uses, organisations can utilise it for various purposes, including
marketing their products and services or gathering data for lead
generation purposes.

Advantages Of Traditional Marketing

 Diverse Audience: Traditional marketing allows brands to reach a large


and diverse range of demographics. Advertisements done through
billboards, television, and radio will extend the message over different
geographical areas and reach the targeted audience. It is also feasible that
new audiences will become acquainted with the brand and product
offering. Reaching a more varied audience can aid in the growth of the
brand and its product offering. As a result, traditional marketing may be a
preferable alternative for bringing in new customers.

 Enormous Brand Exposure: Hard copy marketing materials can be


more easily processed and perform better in terms of brand recall. A
public multi-media campaign can help brands surround the prospect with
value proposition, message, and products. When the advertisements are
out in public, the brand has a huge opportunity to expose them to many
people.

 Credibility Builder: Traditional marketing offers brands more credibility


than online marketing. Printed content and advertisements on larger
mediums are frequently regarded as more trustworthy. One reason for this
is that traditional marketing is associated with established larger budgets.
A corporation that can afford to run an ad in a commercial on television
or radio must have the financial resources. As a result, the brand’s image
is one of growth and stability.
 Reusable Promotional Materials: Traditional marketing approaches are
more sustainable and leave a lasting effect on the brand’s target group.
The same TV ad, flyers, business cards, or brochures can be used more
than once. As a result, one won’t need to create fresh content as
frequently to market the product.  But in the case of digital marketing, to
maintain the viewers’ attention, brands must present a continual stream of
promotional information.

 Better Connect: Traditional marketing methods can make it easier to


reach and connect with the local audience. Radio is unquestionably the
quickest way to advertise the business and convey the message to a local
audience. Traditional marketing strategies, such as marketing brochures,
newspaper ads, local TV commercials, and billboards, place the brand at
the heart of the community and consumer base. As a result, the efforts to
reach the target audience will appear more authentic and less artificial.

Disadvantages Of Traditional Marketing

 Expensive: Businesses need to pay for putting advertising in newspapers


or distributing any leaflet or brochure every time they plan to start a
campaign. They may have to pay for the development of the ads in
addition to the cost of purchasing TV spots. To reap the benefits of
broadcast advertising, they may need to purchase a large number of spots,
which may necessitate a large financial investment before they can see
returns. However, any updates to the website or using new forms of
media like Facebook and Instagram do not incur any additional charges in
digital marketing. The sales team simply accomplishes this for the
product.

 Not easily measurable: Traditional marketing is not always as


quantifiable as digital marketing. While services exist to estimate TV
viewership and billboard drive-bys, they are only approximations. From
page landings to click-throughs to transactions, digital media can identify
KPIs along the whole marketing funnel.

 Less information communicated: Traditional advertising has far less


message delivery carrying capacity than emerging kinds of
communication. If marketers can drive people to the website with the
click of a banner ad or link, brand have practically limitless potential to
provide customers with page after page of information. They must deliver
the message in a few square inches of space or few seconds with print and
broadcast media channels.

 Harder to target and sub-segment: Aside from direct mail, most


traditional marketing approaches cannot and do not provide the same
level of segmentation and targeting that digital marketing channels can
target. Thanks to advances in technology, marketers may now more
precisely target potential consumers depending on the number of personal
information websites collect about users. In turn, digital marketing helps
the marketer get the ads in front of a specific audience.

 More time-consuming: Unlike modern online marketing, traditional


marketing does not allow businesses the time to respond to adjustments
they wish to make in the advertisement. Even if they want to print their
ad in the daily newspaper, they must prepare their ad well in advance, as
in the case of all conventional advertising. Then, when the ad is
developed, one cannot redo it again. In contrast, digital ads may be
evaluated and altered in real-time to optimise their efficacy.

Traditional Marketing Examples

Traditional marketing is everywhere. From the salesperson visiting the


customers’ house to the big billboard on a busy street. The examples of
traditional marketing are endless. Here are a few of the well traditional
marketing campaigns that stood out of the crowd:

Traditional Marketing vs Digital marketing

The world is becoming a digital arena. Thanks to the digital world, many of the
customers’ daily activities, such as reading the newspaper and banking, have
shifted online. The traditional market still has an audience, but it is shrinking
due to digital advancement. But without traditional marketing, marketing
strategies won’t be as effective.

So, both types of marketing have their own sets of pros and cons. Here’s a
rundown on how traditional marketing varies from digital marketing.
Basis Traditional Marketing Digital Marketing

Product and service advertising Product and service advertising


via television, telephone, banner, via digital media or electronic
Meaning
broadcast, door-to-door, mediums employing tactics
sponsorship, and other means. such as SEO and SEM.

Traditional marketing is more Digital marketing is less


Cost
expensive. expensive.

With the help of analytics tools,


Traditional marketing is often
Measurability digital marketing is simple to
difficult to quantify.
measure.

Traditional marketing is more Digital marketing has a more


Reach
suitable for the local audience. global reach.

Once the ad has been placed, Can be done at any moment,


Modification modification is no longer possible even after the ad has been
or is very pricey. published.

The targeting through traditional The targeting through digital


Targeting
channels is more standardised. channels is more customised.

For new or established businesses, online marketing is a huge opportunity for


brand and financial growth. Learning how to improve your online presence will
take your business to new heights, but it can seem daunting without the right
guidance.
sWhat Is an Online Presence?

An online presence is the representation of a business or individual entity on the


internet. There is a spectrum of online presence, ranging anywhere from non-
existent to strong. The stronger your business’s online presence, the more
visibility and engagement you command across digital channels such as
websites, social media, and email.

This six-step guide to setting up an online marketing presence will walk you
through the most important aspects of growing your business online. After
establishing an online presence, you can identify and focus on the channels that
are most effective for your individual business.

6 Steps for Creating an Online Presence

You don’t always need an online presence consultant to get started with internet
marketing. You can use this six-part plan to build a foundation, then bring
a digital marketing agency in once you’re ready for the next stage of growth.

1. Set Your Online Marketing Goals

As an entrepreneur or marketing coordinator, you need to know what you’re


aiming for. You probably hear buzz from your network about different methods
for creating a web presence on a weekly basis. Chasing down every one of these
leads will leave you exhausted, disorganized, and possibly even broke.

Entrepreneurs frequently self-identify as “doers,” which can leave you


particularly susceptible to this approach. Before jumping in head first,
learn how to set marketing goals that will help your business succeed in a
sustainable way.

Your goal-setting process should include:

 Aligning your mission statement with your potential goals


 Setting Specific, Measurable, Attainable, Realistic, and Timely targets
 Building a strategy that ties in objectives that will help you reach your
targets
 Measuring your results and correcting course when necessary

An example goal might be: Leverage online marketing to grow profits by 25%
over the next two years. You will then need to create short term objectives that
help define the immediate activities required to reach your goals.
2. Create an SEO Strategy

With an estimated 3.5 billion Google searches per day, optimizing for search is
a cornerstone of building an online presence. Not to mention, 35% of searches
for products start on Google. The fact is, search engine optimization (SEO)
should be baked into every digital marketing strategy you build at your
business.

Identify the intersection of:

 keywords that are valuable to your business


 keywords that most accurately embody what your business offers

Don’t focus all your efforts on ranking for keywords that your customers or
clients don’t recognize you for (unless you’re introducing a new product or
service).

You can use tools like the Google Ads Keyword Planner or SEMrush to do
keyword research. These tools can help you find popular search phrases and
identify how competitive you must be to rank well for them.
Creating a solid SEO strategy will be paramount for your web design (in step 3)
and content marketing strategy (in step 6). Reach out to MARION today if you
need help from a reputable SEO company in Houston.

3. Build Your Business Website

The next step in creating an effective web presence is building your business
website. But first, why create a website when you can make a Facebook page in
1/20th of the time for free?

The simple answer is that you own your website. If Facebook decides to make a
change or Instagram throttles the reach of your posts, your digital presence
could be smothered. However, you can always maintain control over your
business website. The best approach is to keep your core web presence on your
website and use other digital channels like social media and content syndication
to drive traffic back to your site.
SEO Web Design

Most people naturally understand the need for a visually appealing website that
makes it easy for users to navigate and find what they want. What some
business owners don’t naturally intuit is the need for your website to cater to
searchers and search engines. Your digital real estate cannot sit idly by – it must
attract users.

4. Leverage Social Media Marketing

Did you know that 68% of adults in the US claim to use Facebook? For a
platform that is said to have more than 2 billion active users, this is a huge
opportunity for your business. It’s not just Facebook ads that you need to
consider – platforms like LinkedIn, Instagram, and Twitter all have significant
users bases that can be tapped into.

Setting up a company profile on each platform that you intend to pursue is


highly recommended. A social media profile can provide your users with details
about your product/service offerings, hours of operation, and contact
information. This initial setup of social media accounts is critical for reaching
your web presence goals.

5. Run Effective Email Campaigns

Surely email is too old and boring to be an effective marketing channel for your
business these days, right? Even today, email continues to be a SIGNIFICANT
method for maintaining or creating an online presence for your business. Email
marketing is said to generate $38 for every $1 spent, which makes it one of the
highest performing marketing channels available.

If you struggle to believe the statistics, it’s likely because your perception of
“email marketing” and an effective email marketing strategy are very different.
Email is more than just sending a blanket message to your entire contact
database every time you release a new product or service.
Workflows, segmentation, and (a healthy amount of) personalization are the
keys to an effective email marketing campaign. For example, imagine that you
manage a lawn care business in the greater Houston area and you’re trying to
use email marketing in Houston to grow your client base.

One approach is to use lead generation resources to grow a qualified list of


potential customers. For example, put together a free fertilization schedule
available for download on your website. In order to have the schedule emailed
to their inbox, a web visitor must fill out a form with their email address and
basic contact information.

6. Build and Execute an Effective Content Marketing Strategy

Content marketing is a key component of an effective SEO strategy. In fact,


content marketing should play a major role in all B2C and B2B marketing
strategies to help build your online presence.

The effectiveness and necessity of content marketing is due to the evolution of


marketing over the past few decades. Marketing has shifted from a business-
driven activity to a consumer-driven activity.

There are very few channels where a captive audience will subject themselves
to an irrelevant product or service offering. Content marketing gives businesses
a way to establish their relevance and solve consumer problems.

One of the most prominent uses of content marketing is business blogging.


Maintaining a blog for your business is a great way to answer user questions
that are relevant to your industry and highlight how your product or service is
the best solution for that question.

Helpful and relevant blog posts can be used as a driving force in your social
media marketing strategy, email marketing strategy, and SEO strategy. Not only
are you able to share your insightful content via social media and email, but
your blogs help to attract backlinks and organic traffic. You can even extend
your content marketing to third-party sites by implementing a guest blogging
strategy with related organizations.

Concept of E-Advertising
Online advertising is a marketing strategy that involves the use of the Internet as
a medium to obtain website traffic and target and deliver marketing messages to
the right customers. Online advertising is geared toward defining markets
through unique and useful applications. Since the early 1990s there has been an
exponential increase in the growth of online advertising, which has evolved into
a standard for small and large organizations.
Online advertising is also known as Internet advertising.

A major advantage of online advertising is the quick promotion of product


information without geographical boundary limits. A major challenge is the
evolving field of interactive advertising, which poses new challenges for online
advertisers.

Online advertisements are purchased through one of the following common


vehicles:

 Cost per Thousand (CPM): Advertisers pay when their messages are


exposed to specific audiences.
 Cost per Click (CPC): Advertisers pay every time a user clicks on their
ads.
 Cost per Action (CPA): Advertisers only pay when a specific action
(generally a purchase) is performed.

Examples of online advertising include banner ads, search engine results pages,
social networking ads, email spam, online classified ads, pop-ups, contextual
ads and spyware.

Various Means of Advertising

E-mail
The advent ages of e-mail are its low cost and the ability to reah a wide variety
of targeted audiences. Most companies develop a customer database to whom
they send e-mails. E- mal is emerging as a marketing channel that affords cost-
effective implementation and better, quicker response rates than other
advertising channels.

Banners
Web banners or banner ads are advertisements that are embedded into web
pages similar to the way advertisers pay for space within a magazine. Web
banners are designed to drive traffic to a website and account for 54% of total
online advertising revenue [2]. Web banners and pop-ups can be the useful tools
for online advertisers; however new web browsers provide the web surfer with
options to prevent pop-ups and turn off images from selected (or all) websites.
Beside that, similar to the protection of computer against the virus here come
the anti-spyware or anti-adware software, such as Spyware Blaster and Lavasoft
Ad-Aware.
Skyscrapers
These are extra-long ads running down the right or left side of a web site.

Banner swapping
Banner swapping is nothing but a direct exchange of links between web sites.
To be precise, company A may agree to display a banner (in the form of a link)
of company b in exchange for company B displaying company A’s banner.

Effectiveness Tracking
This is an upstart Dynamic Logic designed by a pioneering service to help
traditional advertisers gauge the impact of their marketing by placing tiny files,
called cookies, on viewers’ computers. This helps them track where people go
after seeing their ads.

Online Promotion Tools and Techniques

Inline with the traditional offline marketing approach of mixing advertising,


marketing, and promotion techniques, online marketing is made up of more than
just advertising. Site layout and features, editorial content (on the organizations
site, as well as cross promotion and/or a media campaign targeting online
authorities in related fields similar to an offline media campaign), sponsorships,
competitions, giveaways and integrated online/offline campaigns are all
designed (in effective websites) to work together, complementing each other
and to ensure not only return traffic to an e-tailers site, but to ensure consistent
brand messages are sent to consumers.

Email marketing is the most utilized form of direct marketing in the online
environment. Email is an effective format for marketers to use as it provides a
quick and efficient way to communicate both commercial messages to a
specified audience, allowing customized mass communication.

Search Engine Marketing

People commonly use links and searching tools on a portal site to search for
information on the internet. Typing in the words or phrases related to what they
are looking for and waiting for the search engines to list out the relevant sites.
Thus Search Engine Marketing (SEM) is a highly effective method of driving
highly targeted visitors to one’s web site. SEM is based on search engine
optimization (SEO), search engine submission, link popularity, and log file and
traffic analysis. These basics allow positioning of one’s site for maximum
search engine visibility.
Pay Per Click (PPC)

Pay per click (PPC) or also known as cost per click (CPC) is the amount or
commissions that the advertisers will pay to the affiliate for each click on their
ad banners. Pay per click advertisements are commonly used in web portal and
affiliate programs, for example Google AdWords and Hits4Pay respectively. In
web portals, it is mostly in the form of text ads which are placed near the search
result.

Rich Advertising

Rich (media) advertising was a concept dreamed up to help marketers reach


consumers jaded with traditional static advertising. With click through rates
(CTR) averaging at a startlingly low 0.5% (Miletsky, 2002), it became evident
that banners that entertained or surprised viewers with their interactivity before
they were even clicked had a definite edge (Mand, 1998). Flash, Shockwave,
Real Audio/Video, pull-down menus, search boxes and applets allow for new
levels of interactivity.

Interactive media

Interactive media offers marketers many opportunities not readily available in


traditional offline sources. For example companies are now able to offer flash-
based demonstrations or tutorials of their products online. Advances in
computer and video gaming has allowed companies to not only buy space
within games to promote their product or brand (for example a billboard within
popular driving game “Grand Theft Auto: San Andreas) but to have games
integrate their product and to build components of the game around their
product - although this has raised discussions regarding maintaining the
integrity of a game so it does not become purely an advertising vehicle which
will turn gamers off (See advergaming; gamevertising). Expanding interactive
media technology has become a catalyst for and product of collaborative
approaches in forming or redefining products and services in the marketplace,
resulting in innovative ideas becoming reality on a daily basis (Adegoke, 2005).

RSS Advertising

RSS is stands for Rich Site Summary or Really Simple Syndication which is a
XML- based format to syndicate content among different websites. RSS
advertising is the integration of RSS into online advertising. According to
Pheedo, by integrating online advertising into an RSS feed, a new online
advertising technique, it has achieved measurably better results than e-mail for
its client. RSS advertising can avoid from Spam, email filtering and pop-up
blocking system
Concept of E-branding

A know and respected brand name can present to potential customers a


powerful statement of quality value, and other desirable qualities in one
recognizable element. Branded products are easier to advertise and promote,
because each product carries the reputation of the brand name.

Elements of Branding

The key elements of a brand are differentiation, relevance value. Product


differentiation is the first condition that must be met with to creat a product or a
service brand. The company must clearly distinguish its product from all others
in the market. This makes branding for commodity products such as salt, nails,
or plywood difficult, but not impossible.

If a brand has established that it is different fro competing brands and that it is
relevant, and inspires a perception of value to potential purchasers, those
purchasers will buy the product and become familiar with how it provides
value. Brands become established only when they reach this leavel of
purchaser-understanding.

In traditional marketing, branding campaigns are designed to embed a company


or a product name in your consumer psyche. Firms often use a combination of
persuasive, emotional advertising campaigns and public relations to encourage a
link between a positive “feeling” and a product. If it works, it can make you
want to spend your hard-earned money as fast as possible. Online companies
are putting branding to work with remarkable success. Research shows the
brand names of seven Internet companies are already recognized by more than
50 million US adults, giving them ‘mead-brand’ status. According to Opinion
Research Corporation International, the following Net names are top-of-mind
with Americans: America Online, Yahoo, Netscape, and Amazon. Com, price
line. Com, Info seek and Excite Ineloquent conducted a research and asked
10,000 randomly selected Internet users

Spiral Branding
The Internet does indeed open new possibilities and new dangers for anyone
who ignores the signs. The advent of Internet sites and mailings make possible a
new form of marketing called spiral branding.

There are two reasons. First, as consumers, it pays to be aware of the tactics
marketers are using to influence us. Second, many of us will need to understand
and use these techniques ourselves, in our own businesses.

The word “spiral” describes the accelerating benefits of a positive feedback


loop. Bill Gates, for instance, often talks about the upward spiral of his
Windows business. Since there are more software, customers purchase more
Windows machines and since there are more customers, developers build more
software which attract more customers. And so goes the cycle.

The keys to spiral branding are:

 Use each media for its best purpose (for instance, don’t try to create a
television experience on the web)
 Do it fast (get something up now and fine-tune as you go along).
 Iterate constantly (make improvements each time around the spiral).

You might also like