MONEY MARKET AND CAPITAL MARKET

An

ASSIGNMENT

Submitted To

University Business School,

Guru Nanak Dev University, Amritsar.

Submitted To: Submitted By:

Prof. Ganesh Judgepreet Singh Batth

MBA (II) General

2014 MGB 1076

UNIVERSITY BUSINESS SCHOOL, GNDU, AMRITSAR.

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ACKNOWLEDGEMENT

No great endeavour in any field is possible in solitude. Its needs inspiration, guidance, and help at every step. I must preface my report by expressing sincere and deep gratitude to those who made it possible for me to complete this piece of work. I would like to thank Dr. Bikramjeet Singh Mann, Head of Department, for giving me the opportunity to work under Mr. Ganesh, University Business School, Guru Nanak Dev University, Amritsar. My extreme thanks to Mr. Ganesh for his extreme support and guidance.

I thank my mentor who guided me till the last word of this report and provided an estimable guidance. He made numerous valuable suggestions and corrections, which greatly improved the quality of my work.

The practical and theoretical knowledge that I have gained from the report will help me in enhancing my career.

Student name – Judgepreet Singh Batth Signature-................

Date -.................

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Preface:

Market provides a key to gain actual success only those brands which best know how to reach, communicate and interact with the customers. There by being always ready to deliver the required products to the customers as soon as possible. For this purpose, they need to have best methods of marketing. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large level.

It is also very important to up to date with the latest trends in the field of marketing. Hence, it becomes necessary to change the techniques of marketing according to the changes in the technology, tastes, preferences, purchasing habits and standard of living of the customers.

This report introduces the comparison of the Traditional methods of marketing with those of Online marketing. It provides a list of advantages of both the methods of marketing. The report will also provide the reasons that why in today’s era online marketing has an edge over traditional marketing.

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INTRODUCTION

Defining Marketing:

Marketing is communicating the value of a product or service to customers for the

purpose of selling that product or service. It is a management process through

which goods and services move from concept to the customer. It includes

the coordination of four elements called the 4 P's of marketing:

(1) identification, selection and development of a product,

(2) determination of its price,

(3) selection of a distribution channel to reach the customer's place, and

(4) development and implementation of a promotional strategy.

The official academic definition from The Chartered Institute of Marketing (CIM).

"Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably." 

Marketing is the action or business of promoting and selling products or services, including market research and advertising.

History of Marketing:

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It is hard for many to believe, but when compared to economics, production and operations, accounting and other business areas, marketing is a relatively young discipline having emerged in the early 1900s. Prior to this time most issues that are now commonly associated with marketing were either assumed to fall within basic concepts of economics (e.g., price setting was viewed as a simple supply/demand issue), advertising (well developed by 1900), or in most cases, simply not yet explored (e.g., customer purchase behavior, importance of distribution partners).

Led by marketing scholars from several major universities, the development of marketing was in large part motivated by the need to dissect in greater detail relationships and behaviors that existed between sellers and buyers. In particular, the study of marketing led sellers to recognize that adopting certain strategies and tactics could significantly benefit the seller/buyer relationship. 

Marketing has pretty much been around forever in one form or another. Since the day when humans first started trading whatever it was that they first traded, marketing was there. Marketing was the stories they used to convince other humans to trade. Humans have come a long way since then and marketing has too.The methods of marketing have changed and improved, and we've become a lot more efficient at telling our stories and getting our marketing messages out there. eMarketing is the product of the meeting between modern communication technologies and the age-old marketing principles that humans have always applied.

Marketing as a subject has proved almost impossible to pin down, and there is little consensus about what it means to study marketing. Most organisations now employ marketers. Marketing roles were traditionally found in commercial firms, but increasingly all kinds of organisations feel the need to employ marketers or to commission services from marketing consultants.

In his important history of marketing, Bartels (1988) proposes that the term ‘marketing’ was first used ‘as a noun’, that is, as a label for a particular practice, sometime ‘between 1906 and 1911’ But starting in the 1950s, companies began to see that old ways of selling were wearing thin with customers. As competition grew stiffer across most industries, organizations looked to the buyer side of the transaction for ways to improve. What they found was an emerging philosophy suggesting that the key factor in successful marketing is understanding the needs of customers. This now famous marketing concept suggests marketing decisions should flow from first knowing the customer and what they want. Only then should an organization initiate the process of developing and marketing products and services.

Hence, since many years marketing is playing a leading role in shaping the various strategies. As a result of which the business executives must be fully aware of the role that marketing is playing in the success of companies. Also, they must be completely aware about the frequently changing patterns of marketing, due to frequently changing in the needs and tastes of the customers, ranging from Traditional form of marketing to Digital or Internet or Online or e-marketing.

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Why Is There a Constant Need for Change in Marketing?

There are many reasons for a constant need for change in marketing. Some of the changes are implemented as a result of ineffective strategies, such as an advertisement that doesn't pull as well as expected. Other changes may be as a result of improperly identifying a target audience, which is the group of people who are most likely to use a product. Outside forces may also prompt the need for a change in marketing strategies. There are several other key reasons companies must constantly change their marketing strategies. Some of the reasons are stated below:

Changes in the technology:

A transformation of marketing is underway as we spend more time on our mobiles, tablets and laptops. The challenge for brands is to connect with customers through all these devices in real time and create campaigns that work across social media, display advertising and e-commerce.The real-time conversations brands have with people as they interact with websites and mobile apps has changed the nature of marketing. The modern-day marketing department needs to combine the creative side of the discipline – using powerful narratives to tap into people’s wishes and aspirations – with the technical side of data, digital engineering and analytics. The two areas do not always sit easily together. Getting creative marketers to work alongside technical staff can be a huge challenge.

Changing Consumer Tastes:

Consumer tastes are constantly changing. Therefore, small companies must constantly keep up with the types of products and services customers want. For example, a small consumer products company may introduce a new drink with two flavors: strawberry and blueberry. However, to increase market share, they may need to add other flavors that consumers want. Otherwise, consumers may start buying other drinks with these flavors. Similarly, consumers tastes change with respect to product features, styles, sizes, dimensions, service and other elements. Most small companies conduct marketing research surveys to keep track of what their consumers need and want.

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Countering competitive strategies:

It is nearly impossible for small companies to stay complacent with their marketing and advertising. A major reason is that a competitor may initiate a marketing strategy that challenges a small company's position in the marketplace. For example, a major competitor may challenge the small company's status as the quality leader in the industry. They may hire a number of engineers and improve the quality of their own products. Subsequently, the competitor may advertise its high-quality status, taking some business away from the smaller company. In this case, the small company must act to ensure its customers that it still remains the quality leader. The company may start doing more comparative advertising between itself and the competitor to demonstrate the superiority of its products. Small-business owners may also need to change distribution channels to keep up with changing competitive strategies. New competitors may also be a threat to a company's market share and continued success.

Product Life Cycle:

Small companies also must change their marketing strategies during different stages of the product life cycle. There are four product life cycle stages once a product hits the market: introduction, growth, maturity and decline. Sales are often strong during the introduction and growth stages. However, sales for most companies in the industry eventually slow when their products hit the maturity state. Hence, it becomes more difficult to maintain sales growth. A small company may be forced to lower prices in the maturity stage, as consumers may become more price sensitive. A company may also need to differentiate itself better from competitors to create its own niche. For example, a small computer software company may create new features for its products to increase sales. The company may also find new uses for existing products.

Considerations:

Outside factors may also force small companies to change their marketing strategies. These extraneous variables may include the government, new laws, limited natural resources and changing technologies. For example, a new packaging law may force a small manufacturer of frozen dinners to change its packaging. The company may need to start including more nutritional details. A lack of natural resources may force companies to find substitutes for manufacturing products. Changing technologies may force the obsolescence of some products. Small-business owners may need to create other products to remain in business. Media preferences among consumers also change, which forces companies to adjust their advertising mixes or the media combinations they use to market their products.

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Traditional Marketing Vs Online Marketing

TRADITIONAL MARKETING:

Traditional marketing is a rather broad category that incorporates many forms of advertising and marketing. It's the most recognizable typse of marketing, encompassing the advertisements that we see and hear every day. Most traditional marketing strategies fall under one of four categories: print, broadcast, direct mail, and telephone.Print marketing is the oldest form of traditional marketing. Loosely defined as advertising in paper form, this strategy has been in use since ancient times, when Egyptians created sales messages and wall posters on papyrus. Today, print marketing usually refers to advertising space in newspapers, magazines, newsletters, and other printed materials intended for distribution. Broadcast marketing includes television and radio advertisements. Radio broadcasts have been around since 1900s, and the first commercial broadcast- a radio program supported by on air advertisements. Television, the next step in entertainment technology, was quicker to adopt advertising, with less than ten years between its inception and the first television commercial in 1941. Direct mail marketing uses printed uses printed material like postcards, brochures, letters, catalogs, and fliers sent through postal mail to attract consumers. One of the earliest and most well known examples of direct mail is the Sears Catalog, which was first mailed to consumers in 1888. Finally, telephone marketing or telemarketing, is the practice of delivering sales messages over the phone to convince consumers to buy a product or service. This form of the marketing has become somewhat controversial in the modern age, with telemarketers using aggressive sales tactics. The U.S. federal governments has passed strict laws governing the use of telemarketing to combat some of these techniques.

Some of the traditional marketing techniques are as below:

Print: Includes advertisements in newspapers, newsletters, magazines, brochures, and other printed material for distribution

Broadcast: Includes radio and television commercials, as well as specialized forms like on-screen movie theater advertising

Direct mail: Includes fliers, postcards, brochures, letters, catalogs, and other material that is printed and mailed directly to consumersTelemarketing: Includes requested calling and cold calling of consumers over the phone.

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Who employs Traditional Marketing?

As it encompasses so many different strategies, nearly every company selling a product or service uses one or more types of traditional marketing as part of an overall advertising strategy. For the most part, this form of advertising depends on the company's available marketing budget.Mid-sized companies and large corporations are most likely to use TV commercials. Advertising on television is usually the most expensive form of marketing, with prices depending on the time slots and programming content.

Bigger companies also use direct mail more often, as the design, printing, and mailing expenses can add up to substantial amounts. Mid-sized and large businesses often use all forms of traditional marketing in one way or another.

Entrepreneurs and small businesses, who may have limited marketing budgets, most often use print marketing in newspapers or newsletters to advertise to local customers. Many also place local radio advertisements. Some use direct mail, and a few may employ limited telemarketing.

While network television commercials are usually out of the budget range for smaller companies, local cable programming has made television advertising more accessible for these types of businesses.

Interesting Traditional Marketing Stats:

•Television is still the most effective form of advertising, with the highest ad revenue in the United States—totalling $78.5 billion in 2011.

•In the UK, 57% of people consider television advertising the most impactful. The second highest is newspaper advertising, at just 15 percent.

•Radio advertising generated more than $17 billion in ad revenue during 2011. This form of advertising is also the least ignored, with nearly 70% of listeners keeping the station tuned in during commercials compared to the second highest—television, at just 20 percent.

•Print advertising generates nearly $30 billion in ad revenue every year. While revenue for print media has slightly declined as online revenue rises, this form of marketing is still effective for many businesses.

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ONLINE MARKETING:

What is Online marketing or e- marketing?

Very simply put, eMarketing or electronic marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms eMarketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous.

eMarketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers.

By such a definition, eMarketing encompasses all the activities a business conducts via the worldwide webwith the aim of attracting new business, retaining current business and developing its brand identity.

When implemented correctly, the return on investment (ROI) from eMarketing can far exceed that of traditional marketing strategies.

Whether you're a "bricks and mortar" business or a concern operating purely online, the Internet is a force that cannot be ignored. It can be a means to reach literally millions of people every year. It's at the forefront of a redefinition of way businesses interact with their customers.

Online advertising, also called online marketing or Internet advertising, is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. Other potential participants include advertising agencies who help generate and place the ad copy, an ad server which technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser.

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Various sources of online marketing:

The internet has transformed business marketing. No matter what you do, the internet is likely to be at the heart of your marketing strategy.

There has, of course, been a rapid rise in the number of ecommerce enterprises selling goods online. Some operate solely in the online sphere. Many others are bricks and mortar businesses that are also offering products and services via their websites.

But many other business models are using the internet to promote their business via websites, blogs, email, social media sites like Twitter and networking sites like LinkedIn. What's more, internet marketing enables you to carry out marketing activities that range from market research to improving customer service.

Ecommerce:

Ecommerce offers many advantages over traditional business models — not least lower overheads and the opportunity to reach wider audiences. You can also improve customer service by allowing customers to make purchases directly from your website. But it’s a highly competitive world out there and to be effective, small firms have to be on top of their game. Everything from website design and search engine optimisation to pay-per-click advertising and safe payment methods must be spot on.

Website marketing:

At the very least, a website can help your customers find you, providing contact details and showcasing your work. But the marketing opportunities that the internet presents go much wider and deeper than this.

You can tell visitors about your product or service and promote special offers. You can improve customer service by giving useful information and enabling customers to offer feedback.

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Promoting your company online:

Your website is no use if nobody visits it. Simple steps like choosing a memorable name, promoting your website and driving traffic to your site via email marketing campaigns and including your web address in printed marketing materials and company stationery can all help.

Social media marketing is now routinely used by many businesses to promote their businesses online and engage with customers and to build their reputation and brand. Establishing a presence on Twitter, Facebook and LinkedIn can allow you to communicate directly with exisiting and new, target markets.

You can also use online equivalents to traditional marketing methods — advertising on other websites that your target customers are likely to visit, for example, or setting up affiliate marketing relationships with other companies.

But one of the best ways to get visibility is to appear high up in search engine rankings. Search engine optimisation and pay per click advertising are generally considered the best ways to get people to your site.

Email marketing:

Email is a convenient and cost-effective way to tell existing and potential customers about offers, to respond to queries and provide customer support. Email messages can be used to highlight special offers and new products and can help drive traffic to your website.

Email marketing has the benefit of lower costs and higher response rates than traditional marketing mailings. It is also easy to track responses so that you can easily test what works and tweak your emails to increase response rates.

But you can also use other forms of online communication as part of your internet marketing strategy. You can write a blog, post comments on discussion forums, write articles for industry websites and use social networking to build relationships.

Social networking:

Social networking sites like Facebook, Twitter and LinkedIn are crucial tools to help you reach out to your target market online. They allow you to set out your stall, demonstrate your expertise and build relationships with customers, prospects and suppliers. Above all they enable you to promote yourself and your business widely, drive traffic back to your website and ultimately boost sales.

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The Difference Between Online Marketing and Traditional Marketing:

Billboard, broadcast advertising, paper coupons and flier used to be popular means to advertise an event or a product in the traditional marketing era. However since the presence of the internet, all of those traditional marketing strategies have turned the other way around. With a rapid growth of information through the internet, many players plunge into online marketing. Both aim to achieve the same goals: attracting customers, creating a brand image, and sticking its claws in the market. What is the difference between traditional marketing and online marketing?

Online Marketing vs Traditional Marketing with respect to following factors:

Cost:

Every business strategy engages to budget, so does both strategies. There are some difference in the cost between traditional marketing and online marketing. Traditional marketing promotes the products of a brand through ads on paper, billboard, television, radio, and more. This marketing strategy spends huge cost to keep the promotion running as the schedule. Online marketing can also carry a cost, but there is numerous online marketing strategies that are virtually free.

Coverage:

In traditional marketing, coverage of your product will be printed on paper media or aired on television and radio. Unfortunately, the exposure your products will get is very often momentary. For example, the newspaper where your high-cost business advertisement appeared in is going to thrown the next day. On the other way, your online coverage will be always there for like forever. It will be archived on the internet and ready to be found easily whenever your customers need it.

Audience:

Traditional marketing is more effective for target customer which out of reach of internet. They are people who do not connect to the internet on daily basis. Senior citizens or low-end economic citizens who are internet illiterate are the best target for traditional marketing strategy. On the other way, people who are never without internet in their reach, such as teenagers and businessmen, are easier to reach through online marketing.

Immediacy:

Traditional marketing takes more time to go from a concept to finished products. It goes through numerous steps, each takes some times. Even, when it has been

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delivered to the customers, it cannot get into customers’ hands simultaneously. On the other hand, even though still takes time for developing concepts and creating contents, online marketing takes almost instantaneous time. It also can get into the customers simultaneously.

Tracking:

It is difficult to keep track of your traditional marketing strategy. You need to put a lot of effort and time-consuming research to get information how your customer behavior against your products. On the other hand, online marketing is easy to track. Email marketing software can tally the number of people who view your message. Moreover, it can the number of advertisements that lead to purchases on online sales.

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Advantages of Traditional Marketing:

TV:

Television broadcasting is not dead. While there has been a significant drop since the rise of the Internet age, a Nielsen 2013 report estimates 115.6 million Americans still own a television set. Despite the boom of social media and online marketing, TV is still an important traditional marketing method companies should consider advertising on. Advertising efforts on TV or radio has the benefit of reaching a mass audience, and while it may be costly, some industries can really benefit from TV and/or radio ads.

Real Connections:

Social conversation certainly has its advantages, but nothing can really compare to face-to-face experiences. Humans still long for that personal connection where we can read expressions and mannerisms, especially when it comes to business matters. Further, word of mouth is still highly effective, particularly for small businesses.

Target Customers:

If you have the marketing budget and know your customers, traditional methods such as billboards, TV, radio, trade shows, and newspapers can bolster your activity and efforts. Traditional media works best when you understand your customer and marketing strategy, and you’re realistic about your marketing spend.

While newer marketing methods do work and can increase a company's client base, completely replacing traditional marketing with the latest marketing techniques can prove dangerous. Traditional methods have a high success rate and are proven. Internet methods are subject to clients or customers having access to an online

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medium and being Internet savvy. With traditional marketing, anyone with a newspaper, mail service, television or radio can learn of your business or service. Rather than customers going online to find your business or service (and possibly stumbling on your competitor's website), you bring your business or service to potential customers with print advertisements and other traditional methods.

Considerations:

Incorporating innovative marketing methods is an effective way to supplement your current marketing campaign. For example, you can have a print, radio or commercial spot advertising your product or service. With these advertisements, you can then plug your company's blog or social media feed. Supplementary marketing methods are great for interacting with your customers, offering special promotions and increasing your online presence.

Real world communication:

People can touch, feel, hear and interact with this form of marketing. Plus you can’t throw parties or host events to promote a product online like you can in the real world. Therefore, every person can try to detect what other people likes better and act accordingly.

Face to face selling:

Unlike social marketing, people have the opportunity to meet their salesman face-to-face. A great no. of salesman can sell a lot of products this way. People also feel less reluctant to try and buy a product because they can experience it with their own hands what the product really do and not only from some images that can be fabricated.

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Advantages of online marketing:

Reach:

The nature of the internet means businesses now have a truly global reach. While traditional media costs limit this kind of reach to huge multinationals, eMarketing opens up new avenues for smaller businesses, on a much smaller budget, to access potential consumers from all over the world.

Scope:

Internet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide range of products and services. eMarketing includes, among other things, information management, public relations, customer service and sales. With the range of new technologies becoming available all the time, this scope can only grow.

Interactivity:

Whereas traditional marketing is largely about getting a brand's message out there, eMarketing facilitates conversations between companies and consumers. With a two-way communication channel, companies can feed off of the responses of their consumers, making them more dynamic and adaptive.

Immediacy:

Internet marketing is able to, in ways never before imagined, provide an immediate impact. Imagine you're reading your favourite magazine. You see a double-page advert for some new product or service, maybe BMW's latest luxury sedan or Apple's latest iPod offering. With this kind of traditional media, it's not that easy for you, the consumer, to take the step from hearing about a product to actual acquisition.

With eMarketing, it’s easy to make that step as simple as possible, meaning that within a few short clicks you could have booked a test drive or ordered the iPod. And all of this can happen regardless of normal office hours. Effectively, Internet marketing makes business hours 24 hours per day, 7 days per week for every week of the year.

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By closing the gap between providing information and eliciting a consumer reaction, the consumer's buying cycle is speeded up and advertising spend can go much further in creating immediate leads.

Demographics and targeting:

Generally speaking, the demographics of the Internet are a marketer's dream. Internet users, considered as a group, have greater buying power and could perhaps be considered as a population group skewed towards the middle-classes.

Buying power is not all though. The nature of the Internet is such that its users will tend to organise themselves into far more focussed groupings. Savvy marketers who know where to look can quite easily find access to the niche markets they wish to target. Marketing messages are most effective when they are presented directly to the audience most likely to be interested. The Internet creates the perfect environment for niche marketing to targeted groups.

Adaptivity and closed loop marketing:

Closed Loop Marketing requires the constant measurement and analysis of the results of marketing initiatives. By continuously tracking the response and effectiveness of a campaign, the marketer can be far more dynamic in adapting to consumers' wants and needs.

With eMarketing, responses can be analysed in real-time and campaigns can be tweaked continuously. Combined with the immediacy of the Internet as a medium, this means that there's minimal advertising spend wasted on less than effective campaigns.

Maximum marketing efficiency from eMarketing creates new opportunities to seize strategic competitive advantages.

Brand Development:

A well maintained website with quality content targeting the needs and adding value to your target audience can provide significant value and lead generation opportunities. The same can be said for utilising social media channels and personalised email marketing.

Far greater exposure:

Your business can be seen anywhere in the world from one marketing campaign, the cost to do this using traditional methods would be considerable. Plus once you have optimised the key word search content in your website you should see a long-term return on your investment and will be fairly low cost to maintain your ranking.

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Why Is Online Marketing better than Traditional Marketing?

Online marketing costs are somewhat inexpensive in comparison with other mediums. Cost effective design and well planned campaign strategies can reach a broader target audience (which can be viewed from virtually anywhere in the world) for a smaller price tag than most traditional advertising budgets.

Online marketing allows consumers of the world to research and purchase services and products at their own pace and convenience. This is massively appealing to the many diverse societies of the world. People are also drawn in better if the option of choice is abundant and results are seen quickly.

The overall success and effectiveness of an online marketing campaign largely depends on the business goals laid out, as well as cost volume profit (CVP) analysis (a form of cost accounting).

Online marketing allows for statistics to be measured more easily and at a lower cost. Virtually all elements of an online marketing campaign can be traced and tested in some way, shape or form. Methods in which this can be done include pay per impression (CPM: cost per thousand viewers), pay per click (PPC: a host company is paid every time an advertisement is clicked on), pay per play (PPP: pay per audio advertisement played) or pay per action (PPA: an advertiser pays for a specific action related to an advertisement, such as a form submission or a purchase). Web analytics are also a useful tool in being able to effectively track the exposure, response and overall efficiency of online marketing by collecting, analysing and reporting back internet data. Here, advertisers can determine the best return on investment (ROI).

Pay per click advertising is notably the most effective means of generating immediate traffic to a website. Advantages of this form include only paying when a user interacts with an ad (clicks on it), the source of traffic can be easily tracked as well as identify which ads are achieving the best result in a campaign, and targets an audience more specifically (ads appear when a web user searches for keywords that are relevant to a specific company or business).Online marketing campaigns can be implemented much faster than traditional forms of advertising, reaching a targeted audience within a matter of days and in some cases, hours.

Search engine optimisation (SEO) companies who specialise in helping companies best market their products and services online can successfully place them on the top or first page of major search engines and directories, such as Google, MSN and Yahoo. This will ensure that competitors are kept at bay (at a lower level on a search engine website), with the sole aim of generating quick and efficient sales or services, as well as increasing a profit ratio.

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Why cant we still afford to completely ignore traditional marketing?

Localize Offline to Build Trust:

We invest in signs and door hangers and try to blanket the town with them. If you want to stay top of mind for your core clients, you have to market to them offline as well. Not only will this drive them to your online campaign and reinforce what they see online, but it can also create direct leads by localizing your brand, thereby creating trust.

Networking in Person:

We don’t budget much for most traditional marketing, but I’m always willing to pay to attend an event or a conference. In-person networking always pays out a major return on my investment.

Local Events Pay Off:

Yes, events IRL (in real life) are beneficial for the customer to jumpstart a relationship with the company and to get hands on with the product. This will encourage the customer to spread word of mouth which is the most influential and valuable part of marketing because it is means more if someone else has something to say from their personal experience and familiarity with the product.

Conferences Still Drive Revenue:

Attending conferences is an important part of our marketing strategy. We also host dinners and events in different cities to provide an opportunity to meet with clients or partners and get to know them better. No matter how effective your advertising and email marketing are, or how skilled you are on the phones, an in-person meeting is always more memorable.

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Guerrilla Marketing Through Trade Shows:

While trade schools (and their relative, conferences) may seem old-school, they are still tried and true ways to create strategic partnerships, find initial customers and meet insiders. While online marketing can have a hard-to-resist ROI, it is no substitution for the face-to-face interaction afforded by trade shows.

On-Site Activities:

When it comes to traditional marketing, I still invest in on-site marketing activities such as events and sponsorships. On-site marketing is not only a great way to make a lasting connection with your target market, but also provides the opportunity to capture great content such as photos and videos which are perfect to release via your social media channels.

Printed Pieces in the Physical World:

Although your cost per impression is typically a lot higher, putting a physical piece of marketing in someone’s hand (or face) can still have an impact. Reaching someone in the real world with a flyer, poster, pin or billboard can help reinforce what you are doing online and legitimize your business in the real world, instead of being just another website.

Consider Your Audience:

We invest in billboards, sponsorships, direct mail, and print ads. We offer a service where a lot of our customers aren’t online, so it makes sense for us. Traditional forms are still valid. Digital tends to be the cheapest form, but remember how you want to set yourself apart from the competition.

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Statistics showing the scenario of online marketing and traditional marketing:

ONLINE METHODS: TRADITIONAL METHODS:

Blogs-52% Direct mail-35%

Social media-45% Telemarketing-33%

SEO (Search Engine Optimisation)-38% Trade shows-19%

PPC (Pay Per Click)-28%

Source: Hubspot , 2012.

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ONLINE METHODS: TRADITIONAL METHODS:

PPC (Pay Per Click)-25% Trade shows-46%

SEO (Search Engine Optimisation)-14% Direct mail-26%

Social media-14% Telemarketing-26%

Blogs-10%

Source: Hubspot, 2012.

Other facts and figures:23

More than one-third of world’s population is on internet and almost 8 new people come onto internet every second.

57% of TV viewers use the web simultaneously. ( Nielson, 2012)

Online marketing costs 61% less per lead than traditional marketing.

57% of marketers acquired customers from blogging.

44% of marketers acquired customers from twitter.

79% of the online shoppers spent at least 50% of the shopping time researching products.

86% of the people skip TV ads. ( The Guardian)

89% of the marketers are maintaining or increasing their online marketing budgets.

YouTube has become the 2nd Largest Search Engine – bigger than Bing, Yahoo, Ask & AOL combined. (Social Media Today)

50% of all mobile searches are conducted in hopes of finding local results, and 61% of those searches result in a purchase. (Search Engine Watch)

84% of B2B marketers use social media in some form. (Aberdeen)

The majority of marketers (59%) are using social media for 6 hours or more each week. (Social Media Examiner)

83% of marketers dindicate that social media is important for their business. (Social Media Examiner)

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CONCLUSION:E-Marketing Solution meets all the business needs, including database management, template development and content creation. Tailoring a solution to an individual business’ requirements, a strategy will align the technology with organizations’ goals to produce the most impressive outcome a business person could expect hope for.

Its cost-effectiveness is relatively high compared to newspapers or outdoor. Pay-Per-Click is also a great way to save money and keep an eye on costs as payment is based on real clicks your ads get. The cost of TV ads is enormous and you cannot even tell how many people actually paid attention.

 Offline marketing is more like estimations and supposition. You cannot tell how many people that heard your commercial from the radio actually came to make the purchase.

Although internet marketing is a long process it is possible to see the results right after implementation of a new strategy. If you buy for example AdWords you can measure directly the clicks and afterwards analyse the impact with Google Analytics. This way the efficiency of your strategy can be measured and changes in real-time implemented if necessary. Compared to, for example, Yellow Pages that is printed once a year, internet marketing offers considerably more opportunities as a website can be updated every minute.

Compared to offline marketing, determining your target group is much more precise online. Online sites like Facebook can target your ads directly to a chosen target group and display how many people you reached. Traditional marketing channels allow you to direct ads to some extent, like you can place home appliance ads into magazine that has a specific target group who are more likely to buy your products. But segmentation is far from the internet marketing opportunities.

The main advantages that internet marketing has over offline marketing are reduced costs, measurability, real-time results and campaign management, better targeting and long term exposure. Using the advantages and opportunities of internet marketing skill you can create cost-effective campaigns to increase your competitive advantage.

The trend of traditional marketing is on the decline, some forms have even been replaced by new media. Marketing opportunities on the web are affordable for any company and the development of new marketing channels are in progress. Therefore the growth of internet marketing sales volume is justified.

For today’s businesses, it is imperative to have a website and use the web as a means to interact with their consumer base. There are some successful traditional marketing strategies, particularly if you are reaching a largely local audience, but it is important to take advantage of digital marketing so as to keep up in today’s world.

Both types of marketing have their purpose. If you had unlimited cash for marketing then a little bit of everything is the best approach.

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REFERENCES:

www.quirk.biz/resources/88/what -is-e-Marketing

cdm.msmary.edu.2011/cdm/ref/collection/MBA/id/371

http://www.hrmars.com/admin/pics/548.pdf

www.marketing-schools.org

Digital-marketing-strategy.weebly.com/digital-marketing.html

macraes.com/blog/digital-marketing-vs-traditional-marketing

www.businesszone.co.uk

www.hubspot.com/marketing-strategies

www.internetworldstats.com/stats.htm

www.businessdictionary.com

en.wikipedia.org/wiki/Marketing

www.knowthis.com

www.sagepub.in

www.smallbusiness.chron.com

www.theguardian.com

www.marketingdonut.co.uk

www.niir.org

Neilsan

Gfk

ON Advertising

Wisionlineworld.com/internet-marketing-vs-offline-marketing/

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