Online marketing has only just made its presence known in the international realm of retailing but its speed, effectiveness and cost saving value has already perched it astride a pedestal in the diverse array of marketing strategies that exist out there. Listed below are some of the benefits businesses stand to reap from investing in internet marketing.

It is cost effective

An e-store ( eCommerce ) is far more cost effective than maintaining a physical storefront that requires the payment of rent, employees wages, utilities and insurance. Online marketing is inexpensive and pragmatic because the ratio of cost is miniscule when compared to the reach of a website. Apart from that, online marketing tools such as e-newsletters, email communications and digital catalogues cost substantially less than printing and disseminating paper catalogues, brochures and pamphlets.

It is efficient

Unlike traditional advertisements in newspapers, magazines or on television as well as paper catalogue, brochure or pamphlet where prices are fixed until the next printing cycle – digital catalogues, social media and blogs can be updated hourly, daily or even weekly to respond to fluctuating market prices. This is a particular advantage in sectors such as the jewellery industry where prices of raw materials are volatile. Apart from that, companies can choose to change the wording of a particular online advertisement or an online newsletter if they find it is not resonating with customers. The same changes cannot be performed with more conventional forms of offline marketing.

The Internet is an international marketplace

The Internet is a global sphere where buyers from disparate corners of the world have an opportunity to view your product and services, unlike a physical storefront that is only accessible by buyers in that region. A website is a convenient, timely and effective way for customers to ascertain the look and prices of products they may be interested in.

The very seamless nature of the Internet allows customers to easily research and purchase products and services and it has the ability to convert a customer into buying a particular product or service. A few clicks of the mouse is all that is involved in an online transaction.

Expands customer databases

By using online marketing devices, corporations can learn more about the needs and concerns of their target demographic audiences by tracking real-time results and measuring customer statistics in a simple, inexpensive way. Almost all aspects of online marketing – from websites to email communications and e-newsletters – can be monitored and tested to ascertain which messages and offerings are appealing to their customer base.

Companies use a variety of ways to do this, one of which includes the pay per click method and online analytics. In the online realm, companies can even target specific demographics to determine their spending habits and sentiments. Online marketing allows companies to target specific genders, age groups, occupations, income levels and so forth. This information is pivotal and could lead to an expansion in customer databases or the success of a particular marketing campaign.

I  got a mail from one of my friend which is having great Management Story. I just want to share the same with you. Kindly have a look this story is focusing on Market, Asset & Bankruptcy.

Here we go ………….

Once there was a little island country. The land of this country was the tiny island itself. The total money in circulation was 2 dollars as there were only two pieces of 1 dollar coins circulating around.

1) There were 3 citizens living on this island country. A owned the land. B and C each owned 1 dollar.

2) B decided to purchase the land from A for 1 dollar. So, now A and C own 1 dollar each while B owned a piece of land that is worth 1 dollar.

* The net asset of the country now = 3 dollars.

3) Now C thought that since there is only one piece of land in the country, and land is non producible asset, its value must definitely go up. So, he borrowed 1 dollar from A, and together with his own 1 dollar, he bought the land from B for 2 dollars.

• A has a loan to C of 1 dollar, so his net asset is 1 dollar.
• B sold his land and got 2 dollars, so his net asset is 2 dollars.
• C owned the piece of land worth 2 dollars but with his 1 dollar debt to A, his net residual asset is 1 dollar.
• Thus, the net asset of the country = 4 dollars.

4) A saw that the land he once owned has risen in value. He regretted having sold it. Luckily, he has a 1 dollar loan to C. He then borrowed 2 dollars from B and acquired the land back from C for 3 dollars. The payment is by 2 dollars cash (which he borrowed) and cancellation of the 1 dollar loan to C.
As a result, A now owned a piece of land that is worth 3 dollars. But since he owed B 2 dollars, his net asset is 1 dollar.

• B loaned 2 dollars to A. So his net asset is 2 dollars.
• C now has the 2 coins. His net asset is also 2 dollars.
• The net asset of the country = 5 dollars. A bubble is building up.

5) B saw that the value of land kept rising. He also wanted to own the land. So he bought the land from A for 4 dollars. The payment is by borrowing 2dollars from C, and cancellation of his 2 dollars loan to A.

• As a result, A has got his debt cleared and he got the 2 coins. His net asset is 2 dollars.
• B owned a piece of land that is worth 4 dollars, but since he has a debt of 2 dollars with C, his net Asset is 2 dollars.
• C loaned 2 dollars to B, so his net asset is 2 dollars.
• The net asset of the country = 6 dollars; even though, the country has only one piece of land and 2 Dollars in circulation.

6) Everybody has made money and everybody felt happy and prosperous.

7) One day an evil wind blew, and an evil thought came to C’s mind. ‘Hey, what if the land price stop going up, how could B repay my loan. There is only 2 dollars in circulation, and, I think after all the land that B owns is worth at most only 1 dollar, and no more.’

A also thought the same way.

9) Nobody wanted to buy land anymore.

• So, in the end, A owns the 2 dollar coins, his net asset is 2 dollars.
• B owed C 2 dollars and the land he owned which he thought worth 4 dollars is now 1 dollar. So his net asset is only 1 dollar.
• C has a loan of 2 dollars to B. But it is a bad debt. Although his net asset is still 2 dollars, his Heart is palpitating.
• The net asset of the country = 3 dollars again.

10) So, who has stolen the 3 dollars from the country ? Of course, before the bubble burst B thought his land was worth 4 dollars. Actually, right before the collapse, the net asset of the country was 6 dollars on paper. B’s net asset is still 2 dollars, his heart is palpitating.

11) B had no choice but to declare bankruptcy. C as to relinquish his 2 dollars bad debt to B, but in return he acquired the land which is worth 1 dollar now.

• A owns the 2 coins, his net asset is 2 dollars.
• B is bankrupt, his net asset is 0 dollar. ( he lost everything )
• C got no choice but end up with a land worth only 1 dollar
• The net asset of the country = 3 dollars.

End of the story; BUT ,

There is however a redistribution of wealth.
A is the winner, B is the loser, C is lucky that he is spared.
A few points worth noting -

(1) When a bubble is building up, the debt of individuals to one another in a country is also building up.
(2) This story of the island is a closed system whereby there is no other country and hence no foreign debt. The worth of the asset can only be calculated using the island’s own currency. Hence, there is no net loss.
(3) An over-damped system is assumed when the bubble burst, meaning the land’s value did not go down to below 1 dollar.
(4) When the bubble burst, the fellow with cash is the winner. The fellows having the land or extending loan to others are the losers. The asset could shrink or in worst case, they go bankrupt.
(5) If there is another citizen D either holding a dollar or another piece of land but refrains from taking part in the game, he will neither win nor lose. But he will see the value of his money or land go up and down like a see saw.
(6) When the bubble was in the growing phase, everybody made money.
(7) If you are smart and know that you are living in a growing bubble, it is worthwhile to borrow money (like A ) and take part in the game. But you must know when you should change everything back to cash.
(8) As in the case of land, the above phenomenon applies to stocks as well.
(9) The actual worth of land or stocks depend largely on psychology.

(Taken from an Article published recently)