Business Strategies in Targeted Internet Marketing

Eric Palmer, Stefani Grunewald, Zachary King, Kevin SipeIS 3040-01Summer SemesterDr. Sneha

Abstract:

Purpose: This Research paper examines consumers and how companies try to market to them on the internet. The Research Question is to determine “What strategies do marketers use in Targeted Internet Marketing?”Design: Understanding consumer trends and new technologies will help determine which internet marketing strategies are the most beneficial.Results: New targeted marketing strategies are emerging and helping business reach customers in new ways, but some strategies are not up to par with their marketing potential.Keywords: One to one marketing, specific interests marketing, geo-targeting, targeted internet marketing, niche marketing, personalized marketing, eMarketing.

Introduction

Marketing is the important process of determining the products or services that may be of interest to customers. Marketing is the activity and the strategies used to gain a customer’s attention and convince them that a certain product or service is something that they need and must have.

New technology is changing the way the world functions, new strategies must be developed to gain customers attention.

The internet is the primary area of promotion and marketers must use a number of strategies one to one marketing, specific interests, niche marketing,

and geo-target marketing

One -to- One Marketing:

One-to-one marketing is often called personalized marketing.

One to one marketing uses a tactic called product differentiation to make sure a product is different from its competitors. One to one marketing is most useful when

dealing with internet. Information can be prioritized to a custom

interest and determine future methods by using a customer configuration system.

Amazon.com is an example of a company that uses “One to One” Marketing. It offers target offers and products based on a customer purchases and searches.

Individualized and tailored messages are made by the internet and means to be the ultimate form of one to one marketing. One example is of mobile commerce. It

allows marketers to connect directly with consumers through phones, PDA, or laptop computers.

Webanalytics cutting edge internet tool that originated from the

need to better understand the usage of its websites Webanalytics is not just concerned with website

statistics, but the interaction between a site and its customer (Simmons).

It collects data from customer profiles, subscriptions, and real time navigation of customers.

A challenge that One-to-one marketing has to face is that some companies have a hard time effectively managing data to effective personalize their efforts.

Specific Interest Marketing

WHAT IS IT? Targeting consumers

by general factors such as gender, age, location, etc

2007 – Facebook unveils Facebook Ads

2009 – Facebook makes $500 million in ads alone

How does it work?

Targeting

Specific Interests

Campaign Views

Niche Marketing What is it? Goals Benefits Example (Left-handed golf clubs)

Process of Choosing a Niche• Five Basic Steps• Requires a ton

of research• Iterative

Process• Not a one time

process

Niche Marketing applied using the Internet

Uses same processes as traditional niche marketing

Characteristics Creation of jobs and careers

Tools to Assist in Online Niche Marketing

Keyword Analysis Tools Nichebot and WordTracker▪ Terms to know: SEO and KEI

Websites and Online Storefronts

Tools to assist in website development and hosting GoDaddy, Viaden

Ways to generate money Selling a niche market product Affiliate webpage advertising and Click-

Through commission

Geo-targeted Marketing:

What is it? Targeting

consumers by geographical location

History 1983 – Global

Positioning System (GPS) declassified

2005 – Creation of Google Earth

How does it work?

Geo-location GPS Internet Protocol

(IP) addresses WiFi hotspots Cell phone signals Location-based

Services (LBS)

• Ad Campaign▪ State▪ List of cities▪ Metropolitan region▪ Certain distance

around a physical address

▪ Integration of Google Maps

Twitter Follower Dashboard▪ Gender▪ Locations▪ Interests▪ Level of engagement▪ Users that one follows▪ Only affects ‘retweets’

Conclusion:

The future for one to one marketing is extremely promising. With more that 60% of the population using devices that connect to the internet, more marketing areas are available.

The future in Specific Interest Targeted Marketing will probably branch more into “Refer-a-friend” Marketing. People are more likely to be willing to try a product if a trustworthy friend recommends the product to them, and more often than not, the trustworthy friend has an incentive to refer a friend.

Since the amount of websites on the Internet continues to rise exponentially, the future of Internet niche marketing will only be more difficult to compete in each year as these niches are discovered and the voids in the market are filled

The battle over privacy continues between consumers and legislators. Due to these concerns, geo-location isn’t taking off like expected. Some consumers choose not to use location-based applications while others embrace it head on (“Advertising Age”). Time will tell who the real target is, the consumer or the advertiser.

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