What Is Strategic Internet Marketing?

Marketing is the process of planning and implementing ideas, product and service ideas, pricing, promotion, and distribution to create personal and organizational transactions. Internet marketing is an inevitable product of human economic, technological, and cultural development. Internet marketing is not limited by time and space, and it has largely changed the traditional marketing form and format.

Strategic Analysis of Internet Marketing

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For enterprises, network marketing has improved work efficiency, reduced corporate expenditures, expanded markets, and brought social and economic benefits to enterprises. Compared with traditional marketing, online marketing has internationalization, informationization, and paperlessness, which has become the trend of marketing development in various countries. In order to promote the popularity and development of online marketing, it is of great significance to carry out a strategic analysis of online marketing. ^[1]

The emergence of network marketing is driven by comprehensive factors such as the development of science and technology, changes in consumer values, and commercial competition. The 21st century is the information century for the scientific and technological foundation generated by network marketing. The development of science, technology, economy and society is welcoming this era.

The development of computer networks has further changed the connotation of the information society. In the age of the information network, the application of network technology has changed the way information is distributed and received, and has changed the environment in which people live, work and study, collaborate, and communicate. Enterprises can also take advantage of the rapid network pickup of new network technologies to promote rapid development of enterprises. Internet marketing uses the Internet as a medium to implement marketing activities in new ways, methods, and concepts, to more effectively promote the success of personal and organizational trading activities. How companies can carry out network marketing and occupy emerging markets in such a huge market is both an opportunity and a challenge for them.

Internet marketing also arises from changes in consumer values: meeting consumer needs is the eternal core of business operations. Using the Internet as a commanding height to provide consumers with various types of services is an important way to obtain future competitive advantages. When the market economy develops to this day, most products are extremely rich in both quantity and variety. Consumers can select and purchase goods and services based on their personal psychological aspirations. The more their needs, the faster their needs change.

Consumers will take the initiative to obtain product-related information through various possible channels for comparison, increase trust in the product and strive for psychological satisfaction.

Network marketing also arises from commercial competition. With the increasing fierce competition in the market, in order to gain an advantage in the competition, all companies have tried their best to attract customers. It is difficult to say that there are any new and unique methods that are surprisingly successful. . Carrying out online marketing can save a lot of expensive store rents, reduce the capital occupation of inventory goods, make the scale of operations independent of the site, and facilitate the collection of customer information. All these can reduce the operating expenses and expenses of the enterprise, shorten the operating cycle, enhance the competitive advantage of the enterprise from the root cause, and increase profits.

Fairness: In online marketing, all companies are on the same starting line. Fairness just means that equal competition opportunities are provided to different companies and different individuals, and it does not mean equality in wealth distribution.

Virtuality: As the traditional spatial concept changes due to interconnection, there is a virtual space or virtual society that is different from the actual geographic space.

Symmetry: In network marketing, interconnectivity greatly reduces the asymmetry of information. Consumers can search any information they want from the Internet and get timely guidance from relevant experts.

Vagueness: The borders that many people are accustomed to are blurred due to interconnection. Among them, the most obvious are the blurring of corporate boundaries, the blurring of producers and consumers, and the blurring of products and services.

Complexity: Due to the ambiguity of online marketing, economic activities have become confusing and difficult to distinguish.

Monopoly: The monopoly of online marketing is a monopoly formed by creative destruction. It exists for a short period of time, because new technologies continue to appear, and new monopolies will constantly replace old monopolies.

Multiplicity: In online marketing, a transaction often involves multiple buying and selling relationships.

Quickness: Because of the interconnectedness, the economic activity has a fast running feature. You can quickly search for any information you need and react instantly to the market.

Oppositional feedback: In online marketing, due to the rapidity of information transmission, people have frequent, rapid, and violent interactions, thereby forming a continuously strengthened oppositional feeding mechanism.

Global: Because of the interconnectedness, transcending national and regional restrictions, the economic activities of the entire world are closely linked. The rapid flow of information, currency, goods and services has greatly facilitated the process of world economic integration.

Expenditure control: The most direct competitive advantage that online marketing brings to enterprises is the control of enterprise expenditures. Network marketing adopts a new marketing management model. It transforms the traditional corporate marketing management organizational structure and operating model through the Internet, and achieves maximum control of corporate expenditures by integrating other relevant departments such as production and purchasing departments. Using the Internet to reduce expenses such as transportation, communications, labor, finance, and office rent in management can maximize management efficiency. Many start-ups on the Internet are also because of the relatively low management expenditures of online companies, which makes it possible to start businesses and develop opportunities on their own.

Creating market opportunities: There are no time and space restrictions on the Internet, and its antennae can be extended to every part of the world. Using the Internet to engage in marketing activities can go farther than in the past through manual sales or traditional sales. The online marketing can create more new market opportunities for enterprises.

Satisfying customers: In the fierce market competition, nothing is more important than customer satisfaction. Using the Internet, enterprises can put information such as product introductions, technical support and ordering information on the Internet, and customers can selectively understand the relevant information at any time, according to their own needs. This overcomes the time and space constraints when serving customers.

Meet the personalized needs of consumers: Internet marketing is a consumer-oriented and emphasized personalized marketing method; Internet marketing has a strong interaction between enterprises and consumers, which fundamentally improves consumer satisfaction; Internet Marketing can meet the consumer's demand for shopping convenience, eliminating the distance and time consumption of shopping in the mall, and improving consumer shopping efficiency. Because online marketing can save huge promotion and circulation costs for the company, the product cost and It is possible to reduce the price, and it is possible to purchase at a lower price.

In network marketing, enterprises must adapt to changes in the environment and adopt new competition principles in order to win in fierce competition.

Personal market principle: In network marketing, computers and networks can be used to adapt to individual needs and provide low-cost, high-quality products or services in a targeted manner.

Adaptability principle: Due to the existence of interconnectedness, market competition takes place globally, and the market is showing rapid changes. The company's products can adapt to the changing personal needs of consumers. The company's behavior must adapt to the rapid changes in the market. The corporate organization must be flexible and flexible to adapt to market changes.

Value chain principle: There are multiple links in the production and operation of a product, and each link may add value. We call it the whole value chain. The company should not only focus on the value-added of a certain branch of the value chain, but also focus on the integration of the value chain and the value-added of the entire value chain.

The principle of specialization: First, find representative personal habits, preferences, and tastes, and then produce products that meet personal needs. Then, the company finds a large number of potential customers of the same type, treats them as an independent group, and sells products to them.

Mainstreaming principle: The practice of giving away first-generation products in order to win the largest market share is called the mainstreaming principle. Although the initial cost of building digital products and infrastructure was high, the cost of continued expansion was small, resulting in new economies of scale.

Network marketing companies must strengthen their own capabilities and change the competitive contrast between the company and other competitors. Consolidate the company's existing competitive advantages: Companies using online marketing can have a deeper understanding of current customer requirements and potential needs, and a certain understanding of the company's potential customer requirements. The marketing strategy and marketing plan formulated have certain pertinence And scientific, easy to implement and control, and successfully complete marketing goals. With the help of the database, the company's marketing strategy is highly targeted, while reducing marketing expenses and increasing sales revenue. Strengthen communication with customers: Internet marketing is customer-centric, and the database stores a lot of relevant data about current customers and potential customers. The company can provide specific products and services according to customer needs, with strong pertinence and timeliness, which can greatly meet customer needs. The rationality and knowledge of customers require participation in the design and production of products to meet their needs to the greatest extent. Through the Internet and large databases, companies can provide personalized services to customers at a low cost. Set barriers for intruders: Designing and building an effective and perfect network marketing system is a long-term systematic project that requires a lot of human, material and financial resources. Once a company has achieved effective online marketing, it is difficult for competitors to enter the company's target market. Because competitors have to build a similar database at a considerable cost, and it is almost impossible.

The network marketing system is a company's incompetent competitive ability and an intangible asset that can obtain benefits. Improving new product development and service capabilities: The company's online marketing can understand customer needs from the interaction process with customers, and even customers directly put forward requirements, so it is easy to determine the characteristics, functions, applications, features and benefits of customer needs. It is easier to communicate directly with customers through online database marketing, and it is easier to generate new product concepts. For existing products, it is easy to obtain customer comments and opinions on the product through network marketing, so as to accurately determine the improvement aspects and main characteristics of the product. Stability with suppliers: Suppliers are companies and individuals that provide products and services to the company and its competitors. When choosing a supplier, the company considers the needs of production on the one hand and the needs of time on the other hand, that is, the planned supply should be based on market demand, and the supplies that meet the requirements will be delivered to the designated location for production at the appropriate time to maximize production. Limit cost savings and control quality. If the company implements network marketing, it can predict market sales and determine a reasonable planned supply to ensure that it meets the company's target market demand. On the other hand, the company can understand the supply of competitors and formulate a reasonable procurement plan. Pre-order when in short supply to ensure competitive advantage.

The company's implementation of network marketing must consider the company's goals, the company's size, the number of customers and the frequency of purchase, the type of product, the cycle of the product, and the competitive position; it also needs to consider whether the company can support technology investment, and the state of technology development and application in decision Situation, etc. The formulation of network marketing strategy has to go through three stages:

The first is to determine the target advantages, analyze whether the implementation of online marketing can promote the company's market growth, and improve the implementation strategy to achieve revenue growth and reduce marketing costs; the second is to analyze the calculation of revenue to consider strategic needs and future revenue; the third is a comprehensive evaluation Internet marketing strategy.

After the company decides to adopt the network marketing strategy, it must organize the planning and execution of the strategy. Network marketing is to transform and improve the current marketing channels and methods through new technologies. It involves all aspects of the company's organization, culture, and management. Without effective planning and execution, the strategy may simply be an additional marketing method that does not reflect the strategic competitive advantage. Strategic planning is divided into: target planning, which is to identify the marketing channels and organizations associated with it, and propose improved goals and methods while determining the use of the strategy; technical planning, that is, the important point of online marketing is to be powerful Technical investment and support, so capital investment, system purchase and installation, and personnel training should be coordinated; organizational planning, that is, after the database marketing is implemented, the company's organization needs to be adjusted to support the implementation of the strategy, such as adding technical support departments, data Collecting and processing departments, while adjusting the original sales department, etc .; management planning, that is, changes in management that are necessarily required after organizational changes, and the company's management must meet the needs of online marketing. After the implementation of the network marketing plan, one should pay attention to control to evaluate whether the strategic competitive advantage is fully utilized and evaluate whether there is room for improvement; the second is to identify and improve problems in the implementation of the plan in a timely manner; the third is to evaluate the technology And adopt.

Supply and demand: In online marketing, supply increases, and prices decrease, leading to demand growth; supply decreases, and prices rise, resulting in reduced demand; for example, when supply increases, manufacturers' costs fall rapidly, and the price level also decreases rapidly. Leading to rising demand. Marginal Utility: In online marketing, the more consumers eat, the stronger their appetite. For example, once Microsoft users use the company s products, they are unwilling to learn to use other systems, and continue to buy new versions of the original system, and have greater and greater dependence on their products, which has a marginal utility. Increasing law. Scale of return: In network marketing, the law of increasing scale of return comes into play, that is, with the expansion of the size of the enterprise, the average cost shows a continuous downward trend. Unemployment: The network economic theory involved in network marketing can improve labor productivity, prosper the economy, create new industries and increase new employment opportunities, and can achieve high-speed economic growth, low unemployment, and low currency. Learning: It is an economic model to increase the value of information in network marketing. Adding value can generate more information, and more information can add value. This kind of continuous special information collection process is called learning. In industries that learn quickly, such as communications and computers, economies of scale can translate into quality.

In short, network marketing theory is a new marketing model that is different from traditional marketing theory. It can have great competitive advantages in controlling costs, market development, and maintaining relationships with customers. However, the implementation of network marketing is not a technical issue or a website construction issue. It also involves the entire marketing strategy direction, marketing department management and planning, and marketing strategy formulation and implementation.