Impact Of Internet To The Traditional Marketing

Technology industries develop and change everyday. People invent many new things to make the life easier and convenient. The invention of cellphone, computer, machine, electric… take us closer to the modern life. Habits, some cultures, trends change.

Marketing changes, too. Marketers must follow that change to make the new strategies, to get the high profit for the company.

In the recent year, Internet was very popular, the most important things in our life. Many fields in our life concern to the Internet. In the general vision, Internet is affecting and helping us.

In this article, I will focus on the critical impact of the Internet to the traditional marketing in the business and show what Internet bring to us.

PART 1: TRADITIONAL MARKETING AND THE INTERNET

Traditional marketing

A long time ago, marketing was useful to approach products to customers. Marketing is an organization function and a set of processed for creating, communicating, and delivering value to customer and for managing customer relationships in ways that benefit the organization and its stakeholders. Door to door sales was very effective way to market your business.

Yellow page was very popular to market your business. It was a book which was full of information of a thousand business’s detail. When a person is looking for a business they would look through the book and find a few businesses that interested them and they would call for more information.

Besides that, many commercials and advertisings were located in media multimedia. It attracted customers to much. We can see it every where in TV, newspapers, magazine, radio… [1] 

What is the Internet?

The original Internet was invented in July, 1969. In 1996, Internet was official established and became popular in the world. Internet is a global network of interconnected network. Most traditional communications media including telephone, music, film, and television are being reshaped or redefined by the Internet. Newspaper, book and other print publishing are having to adapt to Web sites and blogging. The Internet has enabled or accelerated new forms of human interactions through instant messaging, Internet forums, and social networking. Online shopping has boomed both for major retail outlets and small artisans and traders. Business-to-business and financial services on the Internet affect supply chains across entire industries.With the computer, DSL modern and phone line, we can receive databases from Internet Service Provider and access to the Internet. [2] 

Nowadays, Internet is the important part of our daily life. It changes our life and has many critical impact of traditional marketing.

PART 2: THE CRITICAL IMPACT OF THE INTERNET

TO TRADITIONAL MARKETING

Differentiation:

Now there are hundreds of other traditional marketing methods that people still use to market their business everyday. But technique develops everyday, traditional marketing is no longer effective. It’s the time for Internet.

Internet provide good and convenient service for customers. People can watch video clip in, share photos, listen to music, read newspaper, chatting, video conference…

Using Internet in Marketing is the right way to get the more quality, the less price and widenly known. Besides shopping door to door, people can research and evaluate information in the Internet; marketer can advertise their product in the social network or websites instead of pay a high cost for TV and newspapers; company can approach their products to everybody in the world by Internet instead of open brands…

Beside the broke out of the Internet, many E-shop established and catch the large market, get more profit.

Amazon.com is one of the largest retailer website in the world. It sell many tools, books, entertainment things… Their products are cheaper than the shop, diversified products and advertised in nearly 36000 sites in the world help Amazon.com success in their marketing.

Besides Amazon.com, ebay.com, 123mua, bishop… are many successful e-shop, use the functions of Internet to improve their business.

Segmentation:

Marketing segmentation is the consists of a group of customers who share a similar set of needs and wants. A basis for segmentation is a factor that varies among groups within a market. One can identify four primary bases on which to segment a consumer market. They are Geographic segmentation, Demographic segmentation, Psychographic segmentation, Behavioral segmentation

Because of many factors, people change their mind, their ages, their income… everyday. In the past, it was very hard to define the right segmentation.

Piagio is the popular brand in the world. Their segmentations are young persons who style and creative, standard income. They not often promote their new shoes in TV or magazine. Because it is expensive and cannot get the high effect. Their customers are easily change their favorable by the trends.

Nowadays, teenagers are using Facebook, love photography, fashion and design. Catch that trend, Piagio Vietnam celebrate the contest “Beeteam”. The winner must have the highest votes in Vespa Piagio Facebook. That contest attract a hundred thousand of contestant teams and celebrites in Vietnam. In the end of the contest. Piagio showed their new Vespar, the pink one. [3] 

Not take more money, just advertise in Facebook, Piagio got the high quality marketing. They catch their right segmentations and be popular, got the focus of customers. After that, many Photo contest of another brand follow that strategies and got the high results.

Targeting and Positioning:

Each channel can be shown in the define city, town or country. It cannot be showed in over the world without the contracts between government and media provider. Using TV as the marketing tools just can catch the limited market.

Each newspaper have a target audience. Such as teenager, adults, men, women… But as the habit, almost people do not like read commercial pages, they want to read hot news. Besides that, the development of e-newspaper in the Internet is better than pay money to buy newspaper because information in e-newspaper are updated every hours, faster and more believable.

So Internet help the company expand their target, open new area market and achieve their goal faster and easier.

Although still advertise in newspaper reraly, but Converse Vietnam is focusing on online shopping and advertising in their Facebook, their website. They can improve their goals, not only Hochiminh city, Hanoi, Bienhoa… where Converse Vietnam have a brand. They can sell for many customers in Vietnam and reach their financial goal soon. [4] 

Product:

The life style is busy and busier, people do not have free time to shopping, take care of their family. They spent time for working too much. The marketer is hard too approach customers when they always stress by work.

The advent of the internet is changing and helping your life more positive. It open the new way for marketers to increase their target markets. Now, with the Internet, customers could not take a lot of time to shopping. With the click, you can see, research information, evaluation and buy product what you want. It was not too difficult, but better for busy people than shopping in shop.

The improvement, many services open. Truong Giang Super market open online shopping for busy people. They provide fress food, vegetables and many households. It is the right steps of Truong Giang Supper market, catch the hardly customers, make them closer and provide what they want.

Price:

A few years ago, advertising in TV and newspaper are the best choice for companies. Many people watching TV, and reading newspaper, so the cost for each commercial is so expensive.

Channel/ Newspaper

Price

Comments

HTV7

15,000,000 VND/30″

HTV only show in HCMC,

Limited market

VTV1

7,000,000-30,000,000VND/30″

VTV show in Vietnam, but too expensive.

Tuoitre newspaper

2,600,000 VND/60mmx42mm

65,000,000 VND/260mmx375mm

Expensive, not many reader care the commercial pages

Thanhnien newspaper

1,700,000 VND/60mmx40mm

52,000,000 VND/255mmx370mm

Expensive, not many reader care the commercial pages

Cost of advertising in TV and newspaper [5] 

Todays, companies can advertising in the Internet by Facebook, website, blog. Just 1,500,000 VND to 3,000,000 VND for a month. It widely than TV and newspaper, cheaper but attract more customers.

LG, the cellphone companies, have a banner in kenh14.net_the e-newspaper for teenager. Many teenager sign in this website every day, every hours. LG introduce their products to a thousand of teenager, get high advertising quality but low cost. [6] 

LG commercial flash in Kenh14 websites.

Distribution:

To have a new brand in the country, the mother company has to do many complex steps to get the agreement of government. It takes at least 3 months, pay a lot of money, the company may lose their strategies or they cannot open the new brand. Steps by steps but success percentage are difficult to analysis.

To decrease the threatens, improve the reputation, companies try to open the online shop in the Internet. For the big companies, they just ask for the allowance of the government to open the online shop, illegal and takes 1/3 times. So, although do not have or have a little of brand in countries, many companies as known as professional selling when they can located in many countries. Customers can buy what they want, just by the click, no plane. It’s good for both of them.

Monster Beat is the American headphone company. Their products are style, high quality and used by many celebrities. But it does not have any brand in Vietnam. But if you want, we can contact them, send money by credit card, they will ship their headphone to you. So everybody in the world can buy Monster Beat Headphone although they do not have many brands. [7] 

It is the advantages of Internet.

Integrated marketing communication:

Integrated marketing communication is the part of marketing. It is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation.

Communication is the one of important part of Public Relations. In the traditional marketing, TV, newspaper, banners and radio cannot make it good and attract many people, just a group of them. Companies cannot be success if they do not use many of them and have the right strategies, they cannot be known, their products cannot get high profit.

Internet includes many things. You can listen to music, watching video clip, reading newspaper, listen to radio… Nothing is impossible.

This field is strictly use by entertainment service. Miley Cirus join the film campaign is “Hanamontana the movies” of Watt Disney Pictures in 2007. To get the high viewers, at that time, music websites opened the sound track of the film a thousand times, many interview of the film attracted many teenager from every forum. Youtube was uploaded trailer of the film and got high rate viewer. The reputation of the film follow many hearts in the world. The film got 17,4 billions dollar.

Hannah Montana the movies

Customer relationship management:

Customer relationship management is the initiation, enhancement and maintenance of mutual beneficial customer and partner long-term relationship through business intelligence. Generated strategies based on the capture, storage, and analysis of information gathered from customers. [8] 

When Internet was not popular, to keep in touch with customers, the CRM position gathered information by post office. It was really waste time and the letter may stolen. It will decrease the reputation of the company and not good for many CRM strategies.

But with the popular of the Internet, to ask for customer’s detail, survey or holiday greeting, many companies use e-mail.

Happy Travel is the tourism company, their website have 24/24 online adviser to answer wondering of customers. With this way, they get customer’s information easily. They send holiday greeting, brochure or survey via e-mail easily. It is not take many time but widely. [9] 

Conclusion:

Internet gives us the convenient, make our life better.

Besides the advantages of the critical impact of the Internet to traditional marketing, E-marketing also has some worried for customer about the believable, the product quality or the affection of something badly…

Nothing is 100% right or 100% wrong, Internet is the tools to help our life, we are the controller, it better or worse depend on the user.