Экономические науки/6.Маркетинг и менеджмент

Ganzhuga I. O.

Supervisor: Ph.D. in Economic Sciences, associate professor of Management and Business Department, Kotlik A. V.

Kharkiv national university of economics, Ukraine

The essence of internet-marketing and its components

In transitive economy demand for the production of the enterprise is the key factor of competitiveness of the enterprise and effectiveness of its activities. Creating and maintaining such kind of demand, based on consumer awareness of the capacity of the enterprise to meet its needs, is a function of marketing. In modern world the speed of change is very high in all areas. And marketing is not an exception. The use of internet gives a possibility not only to observe these changes, but also follow them. Nowadays internet-marketing is the most modern and promising component of the marketing activities of the enterprise.

This problem is not new for a science and was discovered by many foreign authors, such as P. Kotler, J. Shtraus, R. Frost, P. Smish, D. Chaffey, H. El-Gohary etc. Also the questions, related with internet-marketing, are considered in the works of such Ukrainian and Russian scientists: N. M. Abdikeev, V. Holmogorov, A. V. Martoviy, I. V. Popov etc.

In recent years, the dramatic growth of the internet and increasing sophistication of database technologies has created an expansion of the internet by specialists in field of marketing. Attention to the technology has increased significantly that have caused emergence of the concepts of electronic marketing (e-marketing) and internet-marketing. To operate these concepts firstly it is necessary to define them.

According to J. Strauss and R. Frost, e-marketing is the use of electronic data and applications for planning and executing the conception, distribution and pricing of ideas, goods and services to create exchanges that satisfy individual and organizational objectives [1, p. 24].

And the definition of the internet-marketing given by P. Smith and D. Chaffey is very close to e-marketing. They defined it as achieving marketing objectives through applying internet and related digital technologies [2, p. 8].

And despite the fact that some electronic technologies have been already used in marketing in 1960-s, that has not resulted to the notion of "e-marketing": the term mentioned has appeared after the spread of the use of the internet in the marketing activities of enterprises. There is similar situation, for example, with the concept of electronic business: A. V. Martoviy notes that if the early 90-s electronic business was associated with using electronic, computer or digital technologies, at the beginning of the XXI century electronic business is often associated with internet technologies [3, p. 54].

All the definitions listed above have in common: the use of technology and achieving objectives. On this basis, we would like to propose the following definition of the “e-marketing” and “internet-marketing” as synonyms: use of internet and related electronic technologies in marketing activities of the enterprise to achieve individual and organizational objectives.

Internet as a base of e-marketing is changing the way of selling and buying goods and services. And the marketing mix of e-marketing is essentially the same, but it is the adaptation of product, price, place and promotion to the internet-marketing context.

The immediate tangibility of the product disappears, but it has not caused decrease of the sales online. E-commerce sales are increasing at extremely high rates. Consumers choose to buy products online because they can read clear online facts about the product they are purchasing. The buying process is also customized for returning visitors, making repeat purchases easier [4]. So, the marketing specialist of the enterprise should pay special attention on information about the products on corporate web-site and other sites, where consumers can read it.

Traditionally pricing was about finding company’s costs, discovering how much consumers are willing to pay into competition pricing and setting price after that. The internet has made pricing very competitive and gives consumers the power to shop around for the best deal. Such easy access to information helps to maintain prices within the online world. E-pricing can also easily reward loyal customers. Technology allows repeat visitors to be tracked, easily allowing loyalty incentives to be targeted towards them. Payment is also easy because of online credit cards.

One of the biggest changes to the marketing mix is online purchasing. Consumers can purchase directly from manufacturers cutting out retailers totally. So, the challenge for online retailers is to insure that the product is delivered to the consumer within a reasonable time. But on the other hand, it is possible to get relevant information about product availability [5]. Location and logistics are important within place strategy.

Promoting products and service online is concerned with a number of issues. Having a recognizable domain name is first stage towards e-promotion. Most organizations today have some form of webpage used in most if not all advertisements. Placing banner advertisements on other web pages is a common form of e-promotion. The growth of the amount of media advertising in internet is extremely high in Ukraine: volume in 2010 increased by 93% compared with 2009 and amounted 280 mln. hrn. per year, but still accounts for a negligible amount compared to the overall cost to the media-advertising of 6735 millions of UAH per year [6].

So, we can see that the promotion is the fastest growing component of the marketing mix of e-marketing. But the e-marketing mix must work together and support each other to have a successful internet-marketing strategy.

Internet technologies can also be used in marketing research. Marketing research of the company in the internet can be active or passive. Active marketing research provides answers to the questions that give visitors of company’s web-site. The passive marketing research is based on analysis the statistics of visiting web-site by using automatic services, such as: analysis of log files, advertising channels, and special reports about structure of visitors. So, internet technologies are very useful in process of the marketing research because of possibility to get relevant information in a fast way.

Thus, the growth of electronic and internet technologies has caused the emergence of the concepts of e-marketing and internet-marketing which are synonymous. And they mean use of internet and related electronic technologies in marketing activities of the enterprise to achieve individual and organizational objectives. E-marketing mix is essentially the same to traditional one, but it is the adaptation of product, price, place and promotion to the e-marketing context. The concept of internet-marketing and its components are still insufficiently studied, and therefore will be reflected in the following publications.

Literature:

1. Strauss J. E-marketing: Upper Saddle River / J. Strauss, R. Frost. – New Jersey: Prentice-Hall Inc., 2001. – 519 p.

2. Chaffey D. eMarketing eXcellence: Planning and optimizing your digital marketing / Dave Chaffey, P. R. Smith. – London: A Butterworth-Heinemann Title, 2008. – 305 p.

3. Котлик А. В. Технології та інструменти електронного маркетингу // Концептуальні засади менеджменту в інформаційній економіці: монографія / під заг. ред. докт. екон. наук, професора Т. І. Лепейко. – Харків: Вид. ХНЕУ, 2010. – С. 52 – 81.

4. Голубков Е. П. Использование Интернета в маркетинге / Е. П. Голубков // Маркетинг в России и за рубежом. – 2002. – №3. – С. 109 – 116.

5. Вирин Ф. Ю. Современные средства глубокого анализа рекламных кампаний в Интернете / Ф. Ю. Вирин // Маркетинг в России и за рубежом. – 2003. – №6. – С. 86 – 92.

6. Манукян Г. Специфика контекстной рекламы в Украине/ Г. Манукян. – Сайт «Интернет-маркетинг в Украине» // http://www.internet-marketing.in.ua.