2nd lecture-internet marketing (16/09/10)

 

In our second lecture we studied about different concepts of marketing and how marketing get evolved over time.

Evolution of marketing concept:

1.            Production concept

2.            Sales concept

3.            Marketing

4.            1 to 1

5.            Viral concept

This all evolved from mass production (production concept) to communication power at the hands of the customers. Now the newest concept of marketing is quite dynamic which says that customers are the owner of communication about the product.

In order to do marketing there are various media which can be used e.g.

•             LCDs/ T.V

•             Newspaper

•             Brochures

•             Billboards

•             Transits

Calculation of ROI :

Calculation of ROI of these above mentioned media is not possible. We can get rough estimate but actual amount can’t be calculated. But on the other hand ROI through websites especially marketing ROI on social networking websites can be calculated as an exact amount because it makes sure that visit is on one on one basis.

Ads on these websites are of two types:

•             CPC (cost per click)

•             CPI (cost per impression)

The major difference between these two types is that in the former the advertiser is charged on per click on ad by the viewer. In the latter cost is charged on the basis of how many viewers have actually turned into visitor of the store. In this way exact ROI can be calculated.

Difference between CPC and traditional media is that in CPC we can know how many people have actually viewed your product. But under traditional media this is a major problem.