In the 21st century, the Internet has become the most discussed topics in business and in the media. It has revolutionized the lives of many people, and it has the prospective to make an even superior impact as technology evolves and diffuses.

Hoffman (2000) described the Internet as “the most important innovation since the development of the printing press”, with the potential to "radically transform not just the way individuals go about conducting their business with each other, but also the very essence of what it means to be a human being in society”. Peppers and Rogers (1993; 1997) argued that digital marketing represents a complete transformation of the marketing paradigm from a predominantly one-way broadcast model to a model of totally interactive, totally personalized one-to-one relationships. According to Link Humans, as of 2016 more than 3 billion people worldwide have internet access. This gives a marketer an unprecedented number of customers to reach with product and service offerings, available 24 hours a day, 7 days a week. The interactive nature of the internet facilitates immediate communication between businesses and consumers, allowing businesses to respond quickly to the needs of consumers and changes in the marketplace. Online reviews have become one of the most important components in purchasing decisions by consumers.

The internet has offered consumers unmatched opportunities to locate and compare product offerings. It presents quick and easy ways for customers to learn and shop to pull information when and where they want it. Instead of flying across the country, a prospect needs only to go to the Internet and research products and services. It has changed the dynamics of the business world. Customers are going to the Internet to start their purchasing process. In order to stay competitive, businesses need to embrace and use inbound marketing techniques to get found online. Marketers need to find out where their target customers hang out on the Internet. Then use those social media platforms to publish their information and collaborate with their customers on Twitter, Facebook, Google+, LinkedIn and others. The Internet presents quick and easy ways for customers to learn and shop to pull information when and where they want it. Instead of flying across the country, a prospect needs only to go to the Internet and research products and services.

The Internet has become a pervasive and powerful tool that every company and business use today in some way or another to obtain a competitive advantage. It has brought success to the business firms in terms of increased sales and reduced costs. According to the American City Business Journal, small businesses that use the Internet have grown 46 percent faster than those that do not (Howard, 2002).The use of the Internet has empowered customers because they can go on the Web and quickly find out product and price information, check product availability, place an order, check the status of an order, and pay electronically. E-tailing increases competition by pitting local against national and international competitors (Quelch and Klein, 1996).According to Boone, “the net eliminates geographic protections and limitations of local businesses and it gives smaller firms a wider audience.” (Boone 2011). When applied effectively, internet can help marketers to promote extensive range of products and services by reaching customers with a speedy and low-cost manner. It can also be relevant in acquiring data about the consumer base globally. Internet has been a positive development for marketing of goods and services and its impact upon businesses has been chiefly optimistic.

OBJECTIVES OF THE STUDY:

· To critically analyze the significance of internet in marketing of products and services in India.

· To highlight the benefits and challenges associated with internet marketing for businesses in India.

· To recommend workable measures to overcome challenges associated with internet marketing.

DEFINING INTERNET:

Internet Marketing is also called by the names such as e-Marketing, Web Marketing, or Digital Marketing is an all-inclusive term for marketing products and/or services online – and like many all-inclusive terms, internet marketing means different things to different people. It is an endorsement of products, services, and brands on digital Media like search engines, social media sites, emails and other electronic media. It includes all those strategies that are adopted to market a product or service online, including:

· email marketing

· Social media (Facebook, Twitter, LinkedIn, etc.)

· Mobile marketing (SMS, MMS, etc.)

· Internet banner ads

· Blogs

· Search engine optimization and search engine submission

· Website design strategies

· Online promotions

· Pay-per-click (PPC) advertising

APPLICATION OF INTERNET IN MARKETING:

1. Internet branding:

Internet branding (also referred to as online branding) is a brand management technique that uses the World Wide Web as a medium for positioning a brand in the marketplace. Website creation and optimization, web search, social media, blogs, online press releases, and video marketing are all methods used for online branding purposes. The aim of internet branding is to create value for consumers through enhancing customer satisfaction and persuasive, promotional offers. Branding online allows companies to be able to gain the majority of the competitive market by creating the emotional part of online shopping. The internet has identified and promoted the way in which consumers associate themselves with a particular brand. There are reasons behind consumer behavior and loyalty to a certain brand. Therefore, companies must adjust their online branding strategies so as to accommodate the ever growing connections between customers and brands. After a customer has purchased a product, the way for a brand to be promoted further is through word of mouth. Customers communicate to other potential consumers as to how great their experience was. This encourages them to purchase from the same company since they have trust in the brand (Edelman, 2010). The internet today is escalating at a rapid growth. This is forcing companies to adapt by promoting branding strategies as a marketing communication tool and a cost-effective way to promote brand loyalty (Goswami, 2015). Amazon.com is a prime example of how to build good connections with customers over the internet. Customer connection is the key to business success. The way in which Amazon.com has established these connections by way of book purchases, gives Amazon.com an insight into authors the consumer may like so are therefore able to recommend suggestions. Over time, they suggest these to consumers. This keeps the relationship between Amazon.com and the consumer because it is keeping them enticed and interested. It shows the consumer that Amazon.com cares about their needs and wants.

2. Pricing:

The Internet provides extensive information about prices, features and quality of products. Customers can compare prices, features and quality of products and services of various sellers. There are websites whose sole task is to enable customers to make such comparisons. There are online databases of reviews and ratings of products. Purchase experiences of customers are also easily available on the net. And as customers know more about prices, features and quality of products of numerous sellers, their long-held notions about how price and cost are related start crumbling. Another advantage of the Internet on pricing practices is that it allows marketers to research and test pricing decisions in real-time and with low costs, in contrast to traditional retailing where pricing research is costly in terms of time and money.

By making it easier to track consumer responses to prices, e-tailers can set prices with far greater precision - and make appropriate price adjustments when necessary (Baker, Marn, and Zawada, 2001). Online pricing research makes available information from multiple sources such as customer buying history stored in databases or in cookies created in customers’ computers. Such pricing information can help managers segment their markets in new ways and uncover profitable customer groups.

3. Internet as a means of Promotion tool:

Promotion refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty. The internet, as a modern marketing tool, offers opportunities to reach larger audiences in an interactive way. These interactions allow for conversation rather than simply educating the customer. Facebook, SnapChat, Instagram, Twitter, Pinterest, Google Plus, Tumblr, as well as alternate audio and media sites like SoundCloud and Mixcloud allow users to interact and promote music online with little to no cost. It provides a platform to place advertisements with the potential to reach millions of consumers around the world. Several advertising options are available on the Web. Marketers can place banner and text ads on popular websites that are relevant to their particular business. For example, if a firm sells its own brand of hot sauce, they can also place ads on social networks such as Twitter and Facebook. Internet marketing enables you to build relations with customers and prospects through regular, low-cost personalized communication, reflecting the move away from mass marketing. By using the internet, advertising, promotion and customer services become more effective. It is less costly to perform direct marketing through the Internet than through traditional channels.

4. Internet as a Sales and Distribution Channel:

The Internet also gives retailers an additional channel to sell products. Today, customers can buy almost anything you want on the Internet by visiting a company's website. This allows firms to sell more products without the cost of having to rent out and stock additional retail floor space. The ability to sell goods without the cost of a physical storefront is especially helpful for entrepreneurs who want to keep start-up costs low. By marketing on the Internet, firms can overcome barriers of distance. They can sell goods in any part of the country without setting up local outlets, widening their target market. They can also build an export business without opening a network of distributors in different countries.

Distribution determines how the customer actually receives a product or service (also often called fulfillment). A distribution channel is a group of interdependent firms that work together to transfer product from producer to consumer. The internet has become a direct substitute for an offline distribution channel e.g. online banking. Any product that can be digitized can be delivered over the Internet (newspapers, magazines, music, software, books, TV, movies etc). Online distribution costs are significantly lower. It adds another communication channel between buyers and sellers. It facilitates real-time communication so firms can have closer ties with customers and suppliers - improved market responsiveness. Customer access and service are now 24/7/52. It increases customer convenience and reduces time spent on shopping.

Some industries that are undergoing rapid change due to Internet forces

· Recorded Music industry

· Video/DVD rental industry

· Newspaper and magazine publishing

· Banking

· Textbook publishing

How important is internet marketing for businesses in India?:

Internet marketing is swathing all the parts of the world and that India is no exception. India is one of the most populated countries in the world, with a population of 1.2 billion as of June 2014. Penetration of Internet is around 20 % in India, which is less compared to US which has 80% internet penetration and China which has up to 50%. But 20% 0f 1.2 billion people makes it 25 corer internet users and is having global rank 3 in Worldwide Internet user’s ranking . So one can find how big our target audience is and these numbers are only increasing with time for good companies of digital marketing in India. Following information supports why digital marketing is so essential in India.

1) As per February 2013, India’s Internet Population stood at 150 Million, which is the 3rd Largest in the world.

2) India has seen a 20x growth in search queries in the last 5 years.

3) India is Google 3rd largest market globally.

4) India is the 5^th largest nation in term of YouTube users.

5) Indian’s spend around 16 hours online (in a week) on an average. That’s more than the time we spend watching TV.

6) The Indian Online advertising market has crossed 1000 crores (in 2010) and is growing fast at a rate of 50% per year.

7) India has nearly 950 mobile subscribers and at least 50 million subscribers have internet enables mobile phones.

8) There are around 90 million websites, but there are 500 million Facebook profiles.

9) 375 million people in India are active internet users out of a total population of 1319 million.

10) 84% own mobile phones of all types (33% smart phones) who spend more than 3 hours browsing the internet.

11) In fact, 21% of the population are using mobile for messaging activities followed by video consumption (17%) and gaming (13%).

12) Smartphone penetration in India is expected to grow into 520 million by 2020, making India one of the largest smart phone economies in the world.

13) Women use online instant messaging applications three times as much as men, and are most active social networks. However, men install more apps than women with 16 apps added per month compared to just 11 by women.

14) Search, social networking and email are the top three key categories for online communities in India, with social networking and email being significantly more popular categories in India than the rest of the world.

17) The vast majority of consumers in China and India trust brands that are responsible or sociable, according to new research. The study, from Havas Media, also indicates that only 20% of brands have a notable positive impact on the consumer’s sense of wellbeing and quality of life. Of those polled, 95% and 85% said they trust companies with a responsible or social profile more than those without in China and India respectively.

With the accessibility of reasonable internet led by the market flooded with smart phones, the Indian population is embracing the Digital communication revolution at a lightning speed. Hence, it has become very essential for the advertisers and marketers to be present where their audiences are and engage with them to communicate their value offerings. Digital Marketing will help marketers and the companies engage with their tech savvy audience by through various digital marketing channels.

Benefits of internet marketing for businesses in India:

Internet marketing is essential since it aligns with the way consumers make purchasing decisions. Internet marketing enables business to build relations with customers and prospects through regular, low-cost personalized communication, reflecting the move away from mass marketing. Internet marketing plays a great part in their solution if firms intend to grow their business. Below are the following reasons why Indian companies should go for internet marketing for advancing their business.

· Increase product awareness:

Consumers will only buy products they know about. Through internet marketing product awareness can be increased, and the public can be introduced to the existence of your company, who you are, and what you can offer.

· Interactive:

Most of the traditional marketing channels are static and one-time production, whereas digital marketing is an interactive channel where customers can engage with the brands, data can be shared effectively and using advanced digital marketing techniques firms can even influence them to get converted into potential clients.

· Cost effectiveness:

Internet marketing is one of the most cost-effective means of advertising. Some of the techniques for promoting a business are completely FREE, unlike traditional ad media such as the TV and newspapers. In addition to being cost-effective, internet marketing is also time-saving as it takes less time to find customers and accomplish transactions.

· Consumer preference:

Since Internet shopping is more convenient and cost-effective on the part of consumers, more and more people are now shopping online and researching their needs before making a purchase. Thus, if Indian businesses want to increase their sales, they must be present online to catch these customers.

· Accessible to consumers:

The website is open 24/7, unlike any physical store. This means that marketers can still tend to their customer’s needs, even when they are sleeping.

· Reach out to a wider and bigger audience:

With the constant technological advancements more and more people are gaining Internet access. Businesses in India can reach more people, both local and international. This will open up tons of new opportunities and will prepare them to compete on a global scale.

· Tracking:

In digital marketing tracking the results is easy compared to traditional marketing channels. There are many analytics solutions which offer us a detailed report of the campaigns and these are real time reports tracked hourly and daily basis, which can assist firms to revise their campaigns and strategies if the outcome is not up to their expectation.

· Legitimate yourself:

By establishing and maintaining the presence online, business can show their customers that their business is active, dynamic and working to improve and is trying to grow. The Internet allows local businesses to legitimate themselves as successful companies. By this they will be able to win and retain a large customer base.

Challenges associated with internet marketing:

Internet Marketing is undoubtedly the future of the Marketing as on a daily basis people are getting more and more obsessed with the virtual life. But still, there are a lot of potholes in this road of the future.

· One of the challenges that consumers face in internet marketing is that many internet products are outright scams or promoted with deception, making it difficult to know which one is worth buying. While the quality of products has improved in the past few years, ethics often still miss in online marketing. Lack of trust of the users because of the constant virtual promotions that appears to be frauds. This is an aspect that deteriorates the image and reputation of quality and honest companies.

· The e-commerce doesn’t allow the user “to touch” the merchandise before purchasing it. The consumer is unable to physically feel or try on the product which can be a limitation for certain goods. Because of this, some salesmen are starting to guarantee the possibility of returning the product.

· Slow internet connections can cause difficulties. If the companies build too complex or too large websites, it will take too long for users to check them or download them and they will get bored eventually.

· One of the foremost reasons why internet marketing is affected is that the majority of online marketers fail to deliver ideal response programs as well as customer service. There is thousands of websites live which has no customer care service and still is running. But, the word travels really fast in this virtual world and if a website fails to deliver desired customer service to even a single customer, there is a high possibility that the customers will spread out a negative word in the industry and news no matter genuine or fake, travels faster in the virtual world.

· Online Marketing as people allegedly says does not happen to be of free of cost, there are a lot of things that adds to the cost of internet marketing and they are not at all cheap. Some of the major expenses are the cost of hardware, software, wed site designing, online content and product distribution costs, maintenance of the site as well as server, web hosting of the website and the costliest thing is time, all of these must be considered while planning for Internet Marketing budget and strategies.

· Still, 50% of the Indian population does not have access to the internet and there are many such areas where people are not even literate enough to access the internet. This is a major limitation for internet marketing in the current scenario.

· Internet marketing faces a major current as well as the future issue of “infollution” – the issue of distracting and old data on the internet. There are lots of websites that are decades old and no information is updated on it from a long time. If a customer relies on it and makes a decision, there is a high chance that it can lead to some trouble. This thing is not an issue in conventional marketing as people timely update things in the real world. Whereas there is no such filter available in the virtual world.

· Another drawback associated with internet marketing over conventional marketing is that it is easy to imitate. There are a lot of instances where one successful strategy will be copied in less than 24 hours by your competitors. Thus, you fail to get the desired benefit.

· One major issue and a significant question is that “is your website safe?” In internet marketing it is very easy for competitors to attack your website and put in some hack on it, there are a lot of such examples where competitors tried and also succeeded in damaging the brand image via some online hack or negative attacks.

CONCLUSION AND RECOMMENDATIONS:

Internet marketing is a new compared to traditional marketing channels, but if it’s implemented strategically businesses in India can get a better ROI for their campaigns since internet penetration and digital media usage is increasing in India. Digital marketing is an excellent way to convert the target audience into paying customers. In fact, if we look at the present trends, we will find that it actually has become very important in India and it will really be very difficult for companies to survive in the country if they didn’t start employing digital marketing for marketing their business. To succeed in today’s fast-paced business environment, every business firm needs to aggressively transform their marketing strategy, communications and advertising plan. They need to focus taking risks with new directions on the Internet.

Here, are some constructive strategies that can bring more people to your website, allow you to connect with new or returning customers, and create a digital marketing strategy that works.

· Create a website that is up-to-date, attention-grabbing, and mobile friendly. Your website is the center of all your digital marketing efforts, so if your page is not clean, easy to read, and interesting, it won’t matter how much time you put into strategy development you’re still going to lose customers.

· Maintain a Blog. Your blog should be used for a number of reasons, including allowing you to consistently post new keywords and optimize your search engine strategy. More than that, your blog becomes somewhere you can offer advice, share bits of information, and really connect with your customers.

· Use a Coach or Consultant, if you’re not an expert in digital and internet marketing hire internet marketing coaches and consultants who can give you a consultation about what you should change for success. A coach or consultant can be extremely helpful. For small business owners who need to focus on other business systems.

· Utilize Search Engine Marketing and Optimization which allows your name and website to appear on a list of search engine results. With a strong SEO strategy, your company website will become associated with the keywords used to find your services. This increases your chances of being the company an individual chooses to work with when selecting a company that offers your services or products.

· Use Articles or News Stories Having your name and information listed in other locations on the web can help you grow your company and business. This makes your name visible in an area where customers and clients are already looking and also allows you to become a trusted source of products or services.

· Use Contests and Giveaways since people love that. Anytime you can encourage marketing from your customers in exchange for a free product or service, you will usually see a surge in purchases or connections.

If firms revive their existing strategies, the potential are endless to gain competitive advantage in both national and international markets. The business should integrate new media and techniques on the Web with their marketing strategies. To be successful, online promotional plans must be closely woven with all marketing activities. Firms must devote resources into educating the public through articles and white papers online. If the product or service is very complex or difficult to understand, firms should use tactics that enable them to conduct discussions with their audience through forums, chats, blogs and social media platforms such as Facebook, LinkedIn and Twitter.

The greatest challenge is choosing the strategies that are right for the business and to integrate them with marketing and advertising initiatives. It’s important for the firms think strategically about marketing choices in order to maximize the success of their program and to select the right tactic. With great strategy, planning and focus, the company will achieve the reach it wants with their marketing and advertising budget.

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Received on 06.06.2017 Modified on 15.07.2017

Asian J. Management; 2017; 8(4):943-950.

DOI: 10.5958/2321-5763.2017.00146.9