Internet Promotion - Advantages and Disadvantages

The emergence of globalise trade, increase in foreign investment and cross-border transactions have put many small businesses under pressure to find innovative ways to continue to market their products and services. This is especially difficult given that they often operate on tight marketing budgets.

In the quest for cheap marketing alternatives, these small businesses continue to use conventional marketing tools such as newspaper, magazine, radio and television advertisements, unaware of the advantages that Internet Promotion offers. All too often, these entrepreneurs focus on the disadvantages of Internet Promotion and fail to adequately take advantage of the opportunities that it presents. Moreover, their preoccupation with conventional marketing strategies is driven by a misconception that these are cheaper than Internet Promotion.

To most small business entrepreneurs, marketing or promoting their products or services via the Internet can be a daunting task. However, with adequate information small businesses can benefit significantly from Internet Promotion while minimising the disadvantages that it presents. In fact, it may prove to be the marketing strategy that generates the highest return on investment.

The Advantages

Cost Effective and Enduring Marketing Strategies

The Internet has become the information superhighway for the buying public. Most persons prefer the hassle free transactions that Internet shopping can offer. As a result, the Internet has become the most powerful selling tool. Internet Promotion offers cost effective ways for small businesses to enhance their product or service distribution networks. For example, the use of portals can help create new marketing channels and logistics, or provide better or faster product access for customers.

In comparison to other forms of marketing, Internet Promotion presents the advantage of reduced budget and storage costs, when compared with printing brochures, producing television or radio advertisements or managing a call centre. It presents a fast and cost effective option for penetrating new markets.

Market Penetration

With millions of person using the Internet to search for products and services, small businesses can penetrate other markets at a fraction of the cost of traditional marketing methods.

Websites act as virtual storefronts, allowing businesses to stay open 24/7. Internet Promotion gives a business greater visibility, thereby creating more opportunities for increasing its customers at relatively low cost. Never before has it been easier for an upstart business to be able to reach out to literally millions of potential customers and to position themselves for success, without the need for costly infrastructure and overwhelming marketing costs. Thanks to the Internet, new businesses can become popular almost overnight.

Low Cost, Instant Communication

Email makes business communications instant, whether the customer or business affiliate is across the street or across the globe. It makes it easier for customers to maintain contact and readily facilitates repeat purchasing. An effective online strategy can therefore turn a small web business into a virtual cost saver and income-generating machine. The net result is that the small business can gain significant competitive advantage in a given market.

Many online businesses have therefore resorted to the use of ezines, blogs, pop-up ads and other online marketing tools to let customers know about new products or services as well as provide information relevant to their respective industry. The benefits of this strategy are two fold. Marketers can effectively heighten brand awareness for relatively new products on the market whilst strengthening customer relationships, with shorter time frames.

Content is Timeless

Internet Promotion also provides the advantage of being enduring. Whereas participation at a trade fair or conference loses sales impact, once it is over, and an advertisement in a newspaper or business magazine may quickly lose its sales generating value within a day or two or as soon as the next issue is released; Internet Promotion is often timeless. Apart from the dates and sometimes prices, much of your website content remains valid years after.

Real Time Statistics For Measuring Success of Promotion Campaign

One of the most significant advantages of Internet Promotion is that its success is measurable. Marketers can use tools that provide real time statistics, on unique visitors, repeat visitors, click through rates (CTR) on advertisements, thereby allowing them to evaluate the effectiveness of a promotion campaign. This enables marketers to determine what works for their particular market and to make timely changes in their marketing strategies.

Time Saving

Another important advantage of Internet Promotion is that it saves time since it generally does away with counselling on product uses and benefits, service information and sales administration. Visitors can access "frequently asked questions" to help themselves, and can buy online, without the involvement of staff. This saves time and money. So, whether 10 or 10,000 visitors visit the site, the increased cost is marginal whilst the savings can be immense.

But like any business approach, Internet Promotion is not without its risks and weaknesses.

Disadvantages

Difficulty in Attracting Customers

Small business may not have the resources to pay for paid directory inclusion, pay per click inclusions and often have to rely solely on search engine optimisation or word of mouth to drive traffic to their sites. With millions of businesses selling the same product and services, competing with more established businesses can be frustrating and costly venture for small business.

On the other hand, larger companies can offer promotions, pay for directory inclusions, implement pay per click campaigns as well as employ the who is who in internet marketing to develop campaigns that generate traffic and leads.

Difficulty in Evaluating Legitimacy of Transaction

Another notable disadvantage of doing promoting businesses online is that it may be difficult for the businesspersons and consumers to thoroughly evaluate the legitimacy of a transaction. Small businesses are particularly vulnerable to thieves using stolen credit cards and stolen information to do online transaction.

With Internet credit card and identity fraud on the rise, small businesses are forced to finance costly security measures to reduce their vulnerability to fraudulent transactions.

Salespersons and Customers are Isolated

Another disadvantage of promotion via the Internet is that the customers and businesspersons are isolated. There is little personal contact between customer and salesperson prior to and after the sales is closed. Thus, the prospect for repeat sales may thus be diminished. Entrepreneurs are therefore compelled to adopt marketing strategies to drive online users back to their site.

From all indications, it appears that the advantages of Internet promotion, far exceed the disadvantages. With adequate knowledge, entrepreneur can benefit significantly from Internet promotion, especially small business owners.

More and more, the growth and outreach of the Internets, its ease and accessibility for customers is becoming inevitable. Small business would therefore be well advised to start their web advertising function in order to improve their competitiveness online.

Carla Lendor has been involved in Internet Marketing from 2000. She is a co-publisher of eXplosion!, a newsletter which offers guidance to small online businesses. She is the co-founder of Caricom Single Market Economy, a blog with discusses the challenges faced by Caribbean businesses in the CSME. Visit Patant Consultants International or Caribbean Vacation Resorts for more information.

The Importance of SEO

Search engine optimisation, SEO, is one of the vital aspects of any website, but it is often overlooked or neglected. A website may look beautiful, the systems may be flawless, but with no visitors, it is a waste. SEO is the process of getting visitors, traffic and ultimately business to your website, primarily through achieving high rankings for your web site on search terms with high volume.

Studies have shown that Internet searchers are a notoriously impatient bunch. Almost 82% of all searchers do not go beyond the first 30 results. More than 60% don't go beyond the first 10 results. If your website is not in the top ten, you are missing out on over 60% of your potential clients. This can prove to be a very costly exercise. Even if you are happy with the traffic you get to your website, and let's say it's 40%. You can get an extra one and a half times that quantity of visitors and business or more as the result of an effective SEO campaign.

There is always advertising available as an option, but that is substantially less effective and more costly. On Google, 70% of searchers prefer the natural results to advertisements. Say the term your site is optimised for has 100 searches a day, and you are in position 12. You'll only get 40% of your potential visitors. If you're in position 21, you'll get about 25%. Position 31 and you'll get less than 19%. If you are number 1, you'll get 100 of them. If you buy an advertisement, you'll get 30% and you pay for each visitor. The moment you stop paying, you stop getting visitors. An SEO campaign on the other hand lasts for years. Once you are at the top, it takes a lot to move you down the results. As such, SEO is the most cost-effective and efficient method of marketing your website.

You also need your site to rank well for the correct keyword or search phrase. One of my favourite examples comes from research I have conducted into the job industry as part of an SEO campaign. The term "search jobs" has 21 searches a day. The term "job search" has over 6000. Number 1 for "search jobs" will give you 21 visitors. Number 1 for "job search" though will give you 6000. Choosing the right keywords is an important part of any SEO campaign.

How do you target the site towards a specific search phrase or keyword? By having the keyword in the title tag, the description and in the content. It should also be in the anchor text of links pointing to that site. If you are in a reciprocal link exchange, and the link to your job site is the name of your company, that is far less effective at promoting your website than a link saying "job search - company name." It's a simple step and seemingly obvious, but many website owners do not do that and their site suffers in it's ranking as a result.

With the right proportion of the key word in relation to your content and sufficient inbound links with the right anchor text, your website can become the number 1 site for that term. There is more to SEO than just that, but those are the 2 essential factors. Without good content, or links, your website will never rank well and will never bring in all the business it could. For more info, check out SEO - Sigil Online

Russell Qually is a practicing SEO specialist in South Africa. SEO - Sigil Online