What does the shift from the price strategy of traditional marketing to the cost strategy of Internet marketing tell us?

Internet marketing versus traditional marketing

Internet marketing is the process of accomplishing a series of marketing aspects to achieve marketing goals with the help of the Internet. It is an important part of the enterprise marketing strategy, is the integration of traditional marketing methods and innovation. In this sense, network marketing and traditional marketing are inextricably linked. They are both to strengthen and customer communication and exchange, publicize and sell goods and services for the purpose of, all contain the product, price, distribution and promotion strategy issues. But at the same time there is a clear difference between them, both theory and method have changed a lot. Therefore, the study of network marketing target market, first of all, we must study the link and difference between network marketing and traditional marketing.

1) The change of marketing concept

In traditional marketing, no matter whether it is a non-differentiated strategy or a differentiated strategy, the selection of its target market is for a particular consumer group. But theoretically, no two consumers are exactly the same. Therefore, every consumer is a target market. The emergence of Internet marketing has made it possible to transform a large-scale target market to an individual target market. Through the network, companies can collect a lot of information to reflect the different needs of consumers, so that the enterprise's products can better meet the individual needs of customers

2) the transformation of communication

Communication, from information delivery to the content of the information has changed a lot.

(1) Changes in information delivery

Conveyance of traditional means of promotion generally can only provide a one-way transmission of information. After the transmission of information, it is difficult for enterprises to get consumer feedback in a timely manner, so the adjustment of their own production and management strategies and corporate marketing methods tend to lag a step behind, which will inevitably affect the realization of corporate goals and corporate profitability. At the same time, in the traditional marketing approach, consumers are always in a passive position, they can only be based on the frequency of advertisements in the media, advertising creativity to determine the purchase intention, it is difficult to get further information about the product features, performance and other indicators. This means that in traditional marketing, information transmission is unidirectional.

The emergence of the Internet has made it possible to transform the traditional one-way information communication model into an interactive marketing information communication model. Network marketing on the Internet is directly aimed at consumers. Enterprises to interactive marketing communication, on the one hand, the information in a timely manner, a steady stream of consumers and the public, on the other hand, on the network can maximize the collection of market reflections, so as to maximize the promotion of information communication with buyers and potential buyers.

Through the Internet, enterprises can provide users with rich and detailed product information; at the same time, users can also feedback information to the enterprise through the network. This is the biggest difference between network marketing and traditional marketing.

(2) change in the content of information

In the traditional media, especially in the television advertising, although the enterprise may be a huge amount of money invested in the marketing objectives may be only the image of the company's publicity, the performance of the product, features, efficacy can not carry out in-depth descriptions and portrayal, because of which, the consumer can not be an in-depth understanding of the enterprise's products.

The Internet is the only place where you can find a lot of information on the Internet.

The emergence of the Internet will largely make up for the shortcomings of the traditional marketing in the way of communication. Theoretically, the Internet has unlimited information storage and transmission space, enterprises can use a variety of different types of ways on the Internet, to provide users with a wealth of detailed product information and all the other information related to the product, even in a very brief advertisement, the enterprise can be linked to the way the customer can easily take him interested in publicizing the products and services of the enterprise page.

3) Changes in marketing strategy

Because of the two-way interactivity of Internet marketing, it really realizes the whole marketing. Traditional marketing emphasizes 4P (product, price, place, promotion) combination, modern marketing management is the pursuit of 4C (customer's wants and needs ．cost to satisfy wants and needs, convenience to buy. communication). Whether it is to emphasize the 4P or the pursuit of 4C, any one of these concepts must be based on the premise that enterprises must realize the whole process of marketing, that is, must be from the design stage of the product on the full consideration of consumer demand and willingness. But in practice this is often difficult to do, because of the lack of appropriate communication between consumers and enterprises or communication costs are too high. Consumers are generally only able to make suggestions or criticize existing products, but are not able to get involved in products that are still in the conceptual stage. In addition, most SMEs do not have the resources to understand the potential needs of consumers, and they can only develop and design products from their own capabilities or from the planning of market planners.

This will change under Web conditions. Even small businesses can gather instant information from consumers throughout the marketing process at a fraction of the cost through electronic bulletin boards, online discussion forums, and e-mail. Consumers, in turn, have the opportunity to comment on a range of issues from product design to pricing and service. The two-way interactive communication approach mentioned above increases consumer participation and motivation. More importantly, it enables companies to target their decisions and fundamentally improve consumer satisfaction.

4) Changes in the way of service

Internet marketing is better than traditional marketing to meet the needs of consumers for shopping convenience. Network marketing eliminates the traditional marketing of time and space restrictions, the network of electronic space distance between the parties separated by the "time difference" almost no longer exists. As the network can provide 24-hour service, consumers can always query the required goods or business information and online shopping. The search and shopping process is quick and easy and takes very little time. This advantage is especially prominent in the purchase of some special commodities, such as the purchase of books. The emergence of online bookstores, so that the majority of consumers do not have to run through the bookstore for a book size, just go online to query the book can get the detailed information, online ordering can be.