impact of technology and internet on distribution

8/9/2019 Impact of Technology and Internet on Distribution.

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Impact of

technology and

internet on

distributionVinay Kumar


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c. The Role of the Internet in Marketing:

Internet is very important tool in marketing.

It is useful for marketers in different ways like:

It is the fastest growing communication technology.

Within the first five years, 50 million people were

connected.

Capable of interactively sharing information in real time.

Internet is a new tool to reach consumers initially different

tools like telephone, postal services, radio and

televisions were used as a source to communicate to

consumers but now days along with these tools internetis also being used as a source to reach and to

communicate to customers/consumers.

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Using internet companies can provide their information to

customers through websites, search engines can beused to coordinate the consumers and producers,

customers can used the e-mails to connect to the

producers.

Customers and consumers not only acquire informationthrough internet but also can make online purchases by

placing orders to desired products, it provides

convenience and time saving for both consumers and

producers.

Companies can reduce their need of inventory stocks by

using the inventory systems.

Online banners, ads, website and e-mails can be used as

personalized communication tools.

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d. Electronic Commerce

The process of conducting business transactions overelectronic networks, mostly the Internet.

E-Marketing :

The process of utilizing Information Technology in the

conception, distribution, promotion, and pricing of

goods, services, and ideas to create exchanges that

satisfy individual and organizational objectives.

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E-Business:

The use ofInformation Technology in all business tasks

including production, marketing, accounting, finance,

and human resources management.

Basic objective of the marketing is to use of 4 Ps to

meet customers needs.

This objective is best achieved by using E-marketing in

Supply Chain Management.

Technology can be used to increase efficiency of

marketing and increases company profitability and adds

customer value.

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e. Rules of E-Marketing:

General rules of E. Marketing are:

1. Power Shift from sellers to buyers

2. Increasing Velocity (Speed)

3. Death of Distance

4. Global reach

5. Time compression

6. Knowledge management is key

7. Market deconstruction8. Intellectual capital rules

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f. Buyer Benefits of E-Commerce

Convenience

Easy and private

Greater product access/selection

Access to comparative information

Interactive and immediate

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g. Seller Benefits of E-Commerce:

Relationship building

Reduced costs

Increased speed and efficiency

Flexibility

Global access, global reach

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h. Virtual Business:

There are two types of the electronic commerce

one is termed as business to consumer

commerce and second is termed as business to

business electronic (E-) commerce.

As the term indicates business to consumer

commerce mean consumer acquires product

through electronic commerce for consumption

purpose while forbusiness to businesscommerce is used to sale the product for further

business processes.

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What ever is the type of commerce it requires connection

between the two parties which are buyer and the seller.

This connection and the interaction are provided by the

virtual communities.

Manufacturers or sellers can use the bulletin boards, chat

rooms, newsletters and discussion lists forcommunication process that can facilitate the exchange

process between the buyers and the sellers.

Major source of effectiveness of this system is dependentupon the internet technology that is changed the world

into global village.

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. ey uccess ac or or n erne

BusinessesSuccess of the internet business depends upon

the offer of value and customer driven products

adjusting the prices according to products

values,

going for specific customers instead of the massmarketing,

distributing the products according to customers

convenience.

Designing the marketing mix that is 4ps in that

way which is beneficent for both customers and

producers.

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j. Internet Marketing Objectives

The main objectives of the internet marketing are,

to have

online market share,

to increase the sales level,

make customers to make repeat purchases,market positioning,

image building of the company and

creation of awareness regarding the brand of thecompany ;

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This can be created by using different online promotional

tools on internet that include

bulletin advertisement,

button advertisement,

targeted E-mail etc.

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ome advantages that can be

achieved by using internet include:

it can be used as a tool to do business

increase your customers base

increase your efficiency and effectiveness

cost effective

time saving

open new venue

Can become the part of global economy throughinternet marketing

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impact of technology and internet on distribution

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