European Journal of Economics and Business Studies
Volume 9, Issue 1, 2023 · ISSN 2411-9571 (Print) · ISSN 2411-4073 (Online)
The Role of the Internet in the Development of Marketing and Electronic Services in Business
Public University "Ukshin Hoti", Prizren, Kosovo
hysni.terziu@uni-prizren.com
DOI: 10.26417/451fzx75d
Abstract
Internet marketing and e-services are considered the latest areas of research, which represent a strategic importance for businesses that have directed their efforts towards e-marketplace. Studies have shown that online consumer behavior differs from consumer behavior in the traditional marketplace. On the other hand, managers seem to have a good understanding of the needs of consumers to meet them effectively and efficiently in the electronic environment. Few things have dramatically and instantly affected our lives and the way many businesses operate more than the development of the internet. The ways in which some marketing activities are carried out have changed since businesses turned to trading. The Internet offers opportunities for an organization to grow its business in an efficient and practical way. This means that the internet can be used to conduct marketing research, reach new markets, better serve customers, distribute products faster, solve customer problems, and communicate more efficient with business partners. The benefits of online marketing include improved information flow, new products and customer service, improved availability, and better market transparency. To design and implement a successful e-marketing program, a number of theories, applications, and technologies need to be carefully analyzed and understood. In this paper we will examine the best ways of Internet marketing for business success. The main objective of this article is to understand the impact of the Internet on various areas of marketing, such as product development and service delivery, promotion, pricing and channel distribution. The paper shows that when manufacturers connect directly with customers and shorten distribution channels, inefficiencies can be eliminated, product delivery time can be reduced, and manufacturers can build closer relationships with customers. Consumers use the internet to reduce costs, find otherwise unavailable products, or increase the ease of their purchase. Online customers expect simple, understandable and secure ordering and payment systems. Consumers want confidence that orders will be fulfilled immediately. E-commerce creates value for consumers in many ways. Consumers are treated as a market of one. They may have access to a greater variety of products, often at lower prices. The study suggests that businesses need to pay special attention to the impacts of the Internet and its uses in marketing to be successful and profitable.
Keywords: Internet, Marketing, Business, Companies, Strategy, Consumers, Success
Introduction
The Internet is not an idea that is having a major impact on every aspect of human life, but it is a compact technological structure that has the ability to store all kinds of information on its own, and distribute it to any country in order to immediate. Furthermore, the Internet allows for automated and interactive interaction between all types of interconnected elements such as people, computer programs, electronic devices, Internet networks, and more. Due to this complex compression, it is easy to understand that the Internet as such cannot develop on its own. In this regard, businesses are estimated to be key and key factors that have pushed the development of new technologies to achieve strategic priorities in successful profitable developments.
Analyzing and clarifying the elements of the “development trilogy” facilitates understanding the impact of the Internet on bringing a new strategic point in the field of business: developing strategies for the development of new Internet technologies. From this point of view, the interconnection and dependence of the elements of the "development trilogy" for most companies is only the basis for development.
further business strategies. It offers the possibility of implementing modern business activities, within companies and outside them with suppliers and customers. The trilogy in question, in fact, represents a "circuit of causes" where its elements, the development of the Internet, the development of Internet content and business development - are selected from the "cloud of development" (English: development cloud) which contains all the other factors surrounding business development - have been used to clarify the impact of the Internet on the development of new strategies that lead to the development of new business models. Business development, Internet development and Internet content development on the one hand influence each other in the development of their strategies and on the other hand promote the development and improvement of each other. Thus, the development and improvement of the Internet have a direct impact on the growth and development of Internet content and these elements together dictate the development and change of business strategies.
The Internet division is deliberately defined as a global system of interconnected computer networks using the Internet Protocol Suite (TCP / IP), and the Internet content that represents all the content stored on tools for data storage and open access through Internet transmission services. In-depth analysis of the interconnection and development of these two components clarifies their impact on each other and, most importantly, their impact on the development of new models. of business.
The Internet is a complex structure that is not seen to end in its own development. This structure, developing and improving, is driven by businesses that claim high goals. The impact of individuals through benefit projects or free projects, in this regard, is marginal1. One of the most important lessons to be learned in this regard is the importance of the elements of the "development trilogy". Thus, if one of the elements in a stagnant company, then the "cause circuit" comes to the fore where the impact of the negative development (stagnation) of that element directly affects the development of the other two elements, so this affects the overall success of the company2.
1. Internet Development and Business Addiction
"Information technology and business are inextricably intertwined. I don’t think anyone can talk meaningfully about one without talking about the other. Bill Gates”
Companies that have already expanded their sophisticated internet network to their structures and developed specific content that is vital to their business needs are not said to have reached the peak of their business success. Nowadays the internet is the key technology that enables businesses, especially small and medium enterprises (these enterprises in English are known by the abbreviation SMEs from the words Small and Medium-size Enterprises), to adopt it internationally to improve their performance3. In this regard and in all other respects, the Internet is a living system which is becoming bigger, better, and more insecure with each contribution of private individuals and / or various organizations. . This latest argument highlights the need for companies to consider more than just the adoption of a modern technology, but also aspects that have a direct impact on the vital processes of their business.
The aim of this analysis is to highlight two very important perspectives of businesses that have started and are implementing plans for the implementation of information technologies, namely 1) how the development and use of the Internet affects the change of structure and processes. of companies and 2) the way information technology affects the growth of interaction and dependence between companies and the internet. This analysis will help to understand the importance of developing new, unusual strategies for traditional businesses, both to achieve greater benefits in adopting information technologies and to reduce the risks of using these technologies and creating partnerships. with the lowest possible risk.
Figure 1. Distribution of companies4
1.1. Company - Internet Connection and Internet Addiction.
The rapid development of the Internet has raised many issues that need to be taken very seriously by companies, among them: Internet addiction, security and privacy, identity individual and organizational online, individual and organizational similarity, differences and relationships with their identities in the physical-real world and others. The intensity of the impact of the above issues differs from company to company depending on their type of business and their business model. Companies grouped into three types of traders, analyzed in the article Understanding e-business, can best be presented visually as in Figure 1 where all types of companies are distributed in a strip at the ends of which are pure traditional traders, in one, and pure online traders, in the other. Thus, switching from left to right more companies' activities and / or processes are focused on the Internet, and less on the traditional aspect. Moreover, the more a company is involved in an online environment, through structures and investments in technology and other elements that make up the technological-information development, the more this company's connection with the Internet increases and, logically, it also increases. its dependence on the internet. From this perspective, for example, Internet-based companies use the Internet for every aspect and process of their business, including accepting purchase requests, inventory control, production planning, implementing communication plans, and developing software. and sales activities, development of plans and activities of services and other ancillary programs. Thus, these companies support their core activities entirely online by creating challenges and risks which require new ways of thinking to plan responses to potential incidents and developments of new business models appropriate to the environment5. This implies the fundamental issue is that virtual companies depend on the Internet for their existence, as their business model is based entirely on the Internet. Not only this, all companies, especially virtual ones, are obliged to continuously and in a short period of time review the life processes of their business, and even the whole business model to adapt or change completely. in line with general trade and technological changes.
2. Internet and Companies
The Internet as a sophisticated structure, the basis of information flow within and outside companies has a two-way impact on businesses: 1) it increases the dependence between companies and the Internet itself and 2) it increases the interconnection between businesses. In other words, the more companies develop and disseminate information technology in their business and use this structure for it the better you communicate with your partners, the more their dependence on the Internet increases on the one hand and on partners on the other.
Ignoring other issues, here I will focus on bringing only one important issue of interconnection between the Internet and Internet companies and companies, that is security. Security is the most obvious risk for companies operating online. The business and information that make up the business base of these companies are secured but open to the whole world which has any kind of internet access.
We are witnesses in the case of the company SONY and many others where it has reached the sensitive information of the company without its permission by third parties with only a few can. This is an example of internet security problems which in many discussions raises the question of whether the virtual world is again moving towards "dot com bubble". For this, Business Roundtable (2007), the association of chief executive officers (CEOs) of US companies estimates that companies should assess their dependence on the Internet from the perspective of their business to ensure that they are in be able to have life-saving operations in place as soon as possible after a major internet disruption”, as this action is critical to minimizing potential hostile attacks, as well as to minimizing the negative impact on the economy and overall security. of the country. Also, Business Roundtable (2007) concludes that "business is not able to treat significant Internet disruptions wisely."
3. Marketing for a Successful Online Business
Marketing. Many businesses hate this word while online marketing can be even more difficult. Since there are so many websites and businesses competing in every “corner” of the market, using online marketing to get the most out of them can seem like an incredible challenge. This is especially true if you do not have much money to put on your marketing budget.
But there are many tips that any online business can use to market their business regardless of their financial situation. Here are five strategies to develop a successful online marketing strategy:
Recent statistics show a galloping increase in internet use to promote businesses and services. As a result, as everywhere in the world, online marketing is increasing its weight in the Albanian marketing market day by day due to the need to be part of the global trend. From the need to enable the recognition of services and products. From the ideas to create online platforms to serve individuals, businesses and various institutions, there are many, as well as open platforms, but are they successful?
Figure 2. Steps for an efficient strategy6
Did you know that over 2000 articles are published on different blogs every day? So in short when you are pressing the button to post an article on your blog to increase visitors, another 1,999,999 are doing the same. Wondering when others attract a lot of visitors and have effective strategies? Then let me give you some help.
Everything, no matter how small, needs planning. This is the basis for success and step-by-step planning enables it. What you need to do is not forget them and always keep the following steps written somewhere:
Step-1: Browse the internet and find successful marketing forms (blogs, informative graphics, videos, email marketing campaigns) that have been successful.
Step-2: Find them and analyze them carefully with the aim of further improving them.
Step 3: Promote your article / strategy directly to the individuals / businesses that are interested in them.
Let's analyze the above steps together. Many individuals or online platforms around the world and in Albania publish articles with content that they think makes you work. They start with the idea that "if I publish a lot of articles, someone will fish and read them." Wrong. Quantity and themes are completely different concepts. Start implementing the first step, search and find something that has succeeded. Have you heard of flippa.com? No. How to say this site is like e-bay for sales-purchases. It's like Adam Smith for the economy. It's like Einstein for science. You realized that this page shows that you are in the right place to search.
Then look for businesses or platforms that offer the same service or have the same scope, for example, for online marketing. In front of you will be listed the sites that have the most unique visitors per month, in the field of activity you requested. Bingo! You have already found a platform like yours that has succeeded.
Then look for the article that has attracted the most visitors, take it, read it, and analyze it carefully. As you read it, start creating your own similar article that appeals to the Albanian consumer. Also tickle with the keywords "best", "best of 2015" and "50 best". In less than 30 seconds, you will be given the opportunity to remove or add extra things to your original idea. BuzzSumo? Would you ask what it is? He is a 5-second counselor. Add to that your idea.
Now we move on to the second step. To create something better than the best. Usually we create something similar to the best or the best. Aim for your article or strategy to hit, create a new trend, and be number one. Today the consumer is faced with a host of online platforms and a lot of information, make sure that the article on your blog is current, arouses interest and remains in the reader's memory.
The final stage is publication and promotion. Let me illustrate this with a tangible example from everyday life. Interesting and curious is the fact that many of our friends on social networks often distribute posts of various articles and advertisements. If you ask them why they are distributing them, most of them will answer with the phrase "I just like it".
But in the world of marketing and consumerism, the question is, what makes them click on the post link and then share it? Do you like the content? Some respond that they have not read them at all. What we need to keep in mind and remember are the three things that attract: a) the striking title; b) description (no more than two sentences); c) design. Thus, the more striking the title and the more beautiful the accompanying design, the more interested they will be in reading it or simply distributing it on social networks (which enables a high viewership, and consequently interest). Since we are at content and design, let us bring an example of how current and interesting it is. Email marketing is gaining popularity and widespread use, but the issue lies in the effectiveness of campaigns. Some have followed the above steps and hit with an attractive and interesting title at the same time, but when you open the design leave you speechless. Just like children when we realize that grandparents do not exist. This was research that everyone starting with individuals and online marketing platforms should consider before planning their strategies to increase visitors and reach consumers interested in products or services. offered.
4. How Important Is Internet Marketing for the Success of an Organization?
There is no exact answer to this question. It depends on the nature of a company’s business line. There are many companies that currently use the Internet as the main business transactions such as DELL, AirAsia, etc. However, companies like UPM, the world’s leading producer of forest products use only the internet as a medium to introduce the company and its products to customers through its website.
In addition, throughout the purchasing decision-making process, consumers not only use the Internet in isolation to search for products, but also other media such as printing, TV, direct mail and outdoor. These media still play an extremely important role for marketers to communicate with customers, for example, direct or face-to-face marketing helps marketers build trust with customers and encourage them to buy products. Therefore, it is better to use the Internet as part of a multi-channel marketing strategy which “defines how different marketing channels should integrate and support each other in terms of their development of merit-based proposals and communication. their relative to the consumer and the company. "
These cannot be answered simply by a formula because the context and dynamics of the market are strong variables in these decisions. Although the interest in social media is great, some companies understand what the term - media can mean for their businesses.
According to some research (which we will graphically provide in the following chapter), we know that 92% of consumers report that "word of mouth and recommendations from people [they] know" are the main influence on behavior. their purchase. Only 37% believe in search engine ads, and only 24% believe in online banner ads. They trust their friends and family the most when looking for brand recommendations. But which types of recommendations carry the most weight? Brands are eager to use the power of recommendations, and many companies measure an “NPS,” or Net Promotion Level, which illustrates how likely someone is to recommend a particular brand or company7.
According to a study, "a 7% increase in open word advocacy opens up 1% additional company growth." His research also shows that "a 12% increase in brand advocacy on average generates a 2x increase in revenue growth rate plus market share increases" and, conversely, "a 2% reduction in negative word growth increases sales by 1% ”.
It is important to understand the connection between digital communication and traditional communication in older media; for example, televisions, radios, newspapers, magazines and billboard advertising, the communication model was and is one-very-much compared to one-to-one or many-to-many communication models in digital media like blogs, social networks , wikis and other social media.
The increased fragmentation of the media and consumers, as well as the revolution in mass communication from new communication channels - internet and mobile communication technologies - has created the need for a new marketing communication approach that can provide centralized management and a consistency of communication messages.
The Internet has become a media tool for consumer-sponsored communication. It now represents the number one media source for consumers at work and the number two media source at home. Consumers are moving away from traditional sources of advertising: radio, television, magazines and newspapers. Consumers also constantly demand more control over their media consumption. Consumers are increasingly turning to different types of social media to conduct their information research and make their purchasing decisions.
5. The Role of the Internet in Marketing Strategy
Marketing practitioners have devoted considerable effort to identifying the effect of the Internet on marketing. Early studies predicted the Internet as such an important driver that it would transform even the most basic business environment.
Given the importance of the Internet in business then it should be aimed at presenting a systematic analysis of early predictions of how the Internet will change the business environment and its subsequent impact on marketing strategy8.
The Internet is revolutionizing the way business is run and its use is becoming increasingly critical to the success of business firms9. The Internet is becoming such a widespread tool that any company will use it in one way or another for several years. It is a powerful tool that a business can use to gain a competitive advantage. It offers many business opportunities to grow in sales and reduce costs. Small businesses that use the Internet have grown 46 percent faster than those who do not. Some of the major changes brought about by the Internet can be seen in the way we purchase products and services, obtain information, and make payments through our banks. Consumers can quickly find product and price information and get advice from a wide variety of vendors. Online visitors can check the availability of the product, place an order, check the status of an order, and pay electronically. Using the Internet empowers customers because they can go to the Web and quickly find out where they can get the lowest prices for a particular product or service. Consumers benefit from the Internet because it reduces search costs for products and product-related information10.
Web combines elements from a variety of traditional media, but is more than the sum of the parts. The Internet can be considered a market interruption because it represents a shift in any of the market forces or their interconnections that cannot be predicted with a continuum of historical trends and that, it happens, can significantly affect the performance of a firm or an industry11.
Kotler (1999)12 describes the growth of e-commerce as the only greater opportunity and threat to almost any industry. These pioneering articles considered the Internet as a major driver of change for marketing, in other words as a new technology that presents new dimensions that offer a new basis for competition or the way of doing business. Throughout the years, knowledge about the impact of the internet and new technologies in the field of marketing has accumulated and due to the unique characteristics of the virtual world and its great business potential, a special flow of research has emerged attracting interest from strategy. online and marketing discipline13.
Business organizations will not survive in the age of the Internet unless they change the way they do their business.
Success in the internet age is about learning new business rules, not giving up on basic business principles. Many internet-based companies are not capable because they are built on business models that never have a chance to win14. While the internet has become an indispensable tool in marketing, many marketing managers do not understand how to integrate the internet into their marketing strategy. Developments in Web-based technologies make it necessary to review how businesses should develop and market their products, as this new technology affects all aspects of marketing. Success marketing depends on the degree of business market orientation. Companies that fail to understand the customer’s point of view in designing their internet strategy have only a small chance of success. Unfortunately, many firms use the internet no matter how it fits within their marketing strategy15.
This paper fills an important gap in our understanding of how to integrate the Internet into the formulation of marketing strategy. We argue that the Internet should be seen as part of the firm’s long-term marketing strategy and should be integrated with all other means of formulating and implementing strategies in a way that it conforms to the principles of a sound business strategy. The marketing strategy can use the ideas presented in this document to formulate the most effective Internet-based marketing mix strategies16.
6. Recommendations
In the future, all businesses that will seriously orient their business in general and the marketing factor in particular towards e-marketing will first need to offer an efficient website that is easy to navigate. used by online users and an easy and secure system for internal staff.
Kosovo companies must definitely become part of this wider community, be involved in the new era of virtualization and modern technology.
The Internet or Electronic Marketing enables us to quickly advertise to all those who are interested in our products or services.
To reflect our activity through electronic marketing, means to identify faster and more, it means to be more successful than others, summarizing them all in a single sentence; it means that we have found the gate which enables us a wide publicity.
Considering the research conducted, it is recommended that businesses improve e-marketing. Undoubtedly, the perception of the value of a service or good has a significant impact on customer satisfaction. This value can be increased through online marketing strategies by saving time and cost and providing quality services to attract and retain customers for a long time.
Adopting strategies that consumers will find most suitable for shopping by sitting at home and finding goods and services of their choice. There are also several alternative options for each category of goods that were not available in the traditional marketing and purchasing system.
E-marketing-oriented businesses should offer discounts on their products and services using the same method of motivation in buying the same as with traditional marketing.
They must provide better service quality and security.
Electronic payment to provide greater freedom to individuals in the payment of taxes, licenses, fees, etc.
Reduce deployment costs and make information distribution easily accessible.
Avoid long lines and other expectations.
Electronic marketing to be used for the primary purpose of reducing costs and saving time.
7. Conclusion
The Internet is revolutionizing the way companies do their business and is becoming an increasingly critical tool for marketing success. The Internet enables companies to take some competitive advantage over competition. Some of the changes brought about by the internet can be seen in the way we buy goods and services, find information about products and services, and make our own banking. The Internet has significantly reduced the cost of producing and distributing digital goods, such as software, news, music, stock quotes, and photographs.
Marketing managers need to evaluate the role of the Internet in their marketing strategy. The Internet has changed the way the marketing strategy is formulated and executed in a number of ways. All aspects of marketing, including marketing research, consumer behavior, segmentation, relationship marketing, product management, pricing, distribution and promotion are affected by the internet. Today many companies are integrating the internet with traditional marketing methods in a holistic view of consumers and business. This process means a merging of online and offline approaches to a new business model and value proposition. The exact nature of the new entity will depend on the particular business. Every organization needs to strike the right balance between its offline and online business to meet the needs of its customers.
E-marketing is the activity of marketing, the group of institutions and the processes for creating, communicating, distributing and exchanging offers that have value for customers, clients, partners and society in general. It is the application of information technology in traditional marketing practices.
The dynamic electronic marketing environment offers opportunities to develop new products, new strategies and tactics, new markets, new media and new channels. E-marketing has become an integral part of modern marketing. This possibility of e-marketing operation increases the various levels of marketing risks. More than ten years of internet marketing research have yielded a number of important findings. Based on our review of these findings, it is clear that the internet is playing an increasingly important role in the field of marketing. Traders and their customers are becoming aware of the need to measure cooperative marketing effects (i.e., how the Internet affects store sales). Customer loyalty can be a profit. Personal attention can be given from the market to the consumer, also quality service can be served.
The findings show that the growth of Internet technology has great potential for businesses. There are certain types of customers who are likely to be internet customers. They are people who are happy with technology and innovation. If the business expects consumers to use the Internet to buy its products, marketing efforts should be directed at innovators and early adopters. The Internet brings new issues to consider and may require a review of the existing marketing mix.
Literature
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Notes
- Mustafi, S., Matured and still emerging: The Changing Position of The Internet in Business Strategies of Companies Since the DotCom Hype, FHNW, Olten, 2011 ↩
- Westwood, J., Marketing Your Business: Make the Internet Work for You; Get Into Exports; Learn about Products and Pricing, Kogan Page Publishers, 2011 ↩
- Johnston, D. A., Wade, M., & McClean, Does e-Business Matter to SMEs? A Comparison of the Financial Impacts of Internet Business Solutions on European and North American SMEs, Journal of Small Business Management, 45(3), 354-361, 2007 ↩
- Johnston, D. A., Wade, M., & McClean, Does e-Business Matter to SMEs? A Comparison of the Financial Impacts of Internet Business Solutions on European and North American SMEs, Journal of Small Business Management, 45(3), 354-361, 2007 ↩
- Business Roundtable, Growing Business Dependence on the Internet — New Risks Require CEO Action, Washington DC, 2007 ↩
- http://smartmarketing.al/blog/2016/06/10/strategji-te-suksesshme-ne-marketingun-online/ ↩
- Chaffey, D., Ellis-Chadwick, Johnston, K.F. dhe Mayer, R., Internet Marketing: Strategy, Implementation and Practice, 2nd ed., Edinburgh: Pearson Education, 2003 ↩
- Mayer, R., Internet Marketing: Strategy, Implementation and Practice, 2006 ↩
- Smith, P.R. and Chaffey, D., E-Marketing Excellence At the Heart of E-Business, Butterworth Heinemann, Oxford, UK, 2005 ↩
- McArthur, D.N. & Griffin, T., A marketing management view of integrated marketing communications, Journal of Advertising Research, 1997 ↩
- Vollmer, C. & Precourt, G., Always On: Advertising, Marketing, and Media in an Era of Consumer Control, McGraw-Hill Education, 2008 ↩
- Kotler, P., Marketing for Hospitality and Tourism, 5th edition, New Jersey: Pearson Prentice Hall, 2010 ↩
- Howard, C., Winning the Net Game: Becoming Profitable Now That the Web Rules Have Changed by Howard, Entrepreneur Press, 2002 ↩
- Hoffman, D.L. and T.P. Novak, T.P., Marketing in Hypermedia Computer-Mediated Environments: Conceptual Foundations, Journal of Marketing, 1996 ↩
- R.A. Peterson, S. Balasubramanian, B.J.J.A.M. Bronnenberg, Exploring the implications of the internet for consumer marketing, Journal of the Academy of Marketing Science, 1997 ↩
- Kotler, P., Marketing for Hospitality and Tourism, 5th edition, New Jersey: Pearson Prentice Hall, 2010 ↩
© 2023 The Author(s). Published by Mentisia under CC BY-SA 4.0.