Business Marketing vs. Consumer Marketing
(http://www.statistics.gov.uk/cci/nugget.asp?id=177 9-12-02)
The Internet should be seen as a strategic element for a company to accomplish its mission. It may therefore be embedded into the traditional business operations and then “leveraging” it as a tool “to increase sales, satisfaction and service levels.” (Hutt and Speh 2001, p.118) Besides raising a general or specific awareness it is particularly interesting to use it as an (alternative) distribution channel, as a powerful communications device to build costumer relationship, as an information management tool and for integrating members of the supply chain. (Chaffey et al. 2000, p.5)
2.2. Distribution channel alternative
The advantages of the Internet with its 24/7 reachability makes it a promising alternative as additional or depending on the company exclusive distribution channel. The opportunities to access and address markets all over the world are huge. The Internet creates opportunities for sectors of industry and sizes of business which might not historically have traded in internationally. When for example General Electric needed lighting replacement parts and instead of just asking their domestic suppliers, posted their request for quotes on the company’s website, a Hungarian vendor won the bid, a firm that would not even have been contacted in the days of paper purchasing forms. (Kotler 2001, p.239)
2.3. Communications device
Due to its popularity the Internet is a convenient way to spread the company’s vision towards its strategic objectives and advertise its products to a constantly increasing audience. This helps enhancing company and company’s brands recognition and new customers can be targeted. Some marketing tools are particularly applicable through the net. When Sony VAIO Europe initially drew up the requirements for their new global advertising campaign VIVA it included a variety of web based content like viral marketing, pdf online tutorials and a customer orientated redesign of their homepage. The company Intranet can be used as a blackboard to efficiently spread information throughout the staff. Within Sony the Intranet is a useful tool for exchanging data and information between external agencies and the sales force and for announcing any changes affecting the whole organization.
2.4. Information management tool
Gathering information of customers ordering products online or visiting the company’s homepage is a valuable supplement to established market research methods. This provides the business marketers with useful information regarding the demographic composition of the customer base and desired wants and opinions towards the offered products. Additionally, various regularly updated information can be provided via the net. All kind of inquiries or help requests can be dealt with in a timely cost effective way.
2.5. Supply chain integration
With reduced transaction costs while communicating over the Internet it is possible to “provide low-cost access to both, order entry and order tracking” (Hutt and Speh 2001, p.118) The supply chain members can have personalized access to the company’s IT-system to an extent that can be managed with different password secured access levels. Sharing vital information will help to let the supply chain work seamlessly. An example for order tracking over the Internet can be found looking at the online store SonyStyle. With a personalized account number one can track the progress of a particular order continuously.
2.6. Conclusion
Summarising the above, the Internet is still a relatively new and throughout the economy inconsistently used medium. It nevertheless offers a huge variety of additional benefit for a company. Facilitating the information flow between production and the sales force and the customer it clearly has the potential to significantly increase sales, to enable new ways of communication to the customers and finally to gain a higher degree of customer satisfaction and service level.
