Encyclopedia of Marketing. The main goal of Internet marketing Types of company goals on the Internet

Every time we decide to perform some action, we mentally ask ourselves the most important question: what will this give me? If we consider it in more detail, it consists of two components:
– what would I WANT to get from this?
– what can I REALLY get from this?
Likewise with a website (be it a company website, an online store, your personal blog, or something else). When creating and further managing, the final goal should always be visible in your head: WHAT YOU WILL GET AS A RESULT.

It could be:
– increasing company awareness;
– feedback from clients;
– selling goods via the Internet;
– working with regions or remote clients;
– search for partners;
– generating income from advertising;
– newsletter for partners and clients;
– system for working with remote workers;
- etc…

Goals can be varied, but in any case, they must be measurable.
If you increase awareness, then by what percentage?
If there is feedback, then this is most likely an increase in quality, by how much?
If a sale, then in what volume, at what prices?
If you are looking for partners, how many partners and in what time frame?

Unfortunately, we still make websites based on the question What do I want to get? But they rarely study the question - What the market can offer me, according to my request (what is the volume, at what prices, etc.).

Let's take a simple example. The theme is food (this includes pizza delivery, and just shops, and juices...).
Do you have a small grocery store and are you wondering whether it makes sense to invest in a serious online store?
I would recommend paying attention to the following elements:

1. Trends and growth of the entire Internet market.

Such a graph doesn’t tell much, so let’s look at the changes in these markets as a percentage. Then everything will become more or less clear.

This graph already shows that the food trend almost completely coincides with the development trend of the entire Internet.
Over the past two years, the share of users of the topics we are interested in has fluctuated from 4% to 6%. Those. on average, it accounts for 5% of total users.

However, we are not interested in the entire Internet, but in Ukraine, and specifically in Odessa. Let's look at these indicators.

2. Share in regions.
Having a general idea of ​​trends, it would be nice to know what we can expect in our region.
It will be useful to study the following data:

Share of visitors from Ukraine: 4.8% (5.6 million people)
Share of visitors to the food section on the Internet: 5,3%
Share of visitors in Ukraine to the “food” section: 0.47% (26,320 people).
Share of visitors from the Odessa region in all sections: 6.2% (347 thousand people)
Share of visitors from the Odessa region in the “food” section: 3.47% (913 people).
Share of sites about “food” on the Internet: 3,26%.
Share of sites about “food products” in Ukraine: 0.95% (1250 sites).

3. Conclusions.
What do these numbers tell us? Was it worth considering them all or just looking at the region we needed?
In general, I believe that the more numbers we have at our disposal, the more prepared we can be for market surprises.
So, after analyzing the data we get:

Maximum audience in Odessa: about 1000 people
If you are interested in a particular area, you can try to find out its percentage of the city. Apply a correction factor to the type of area (residential, business), Internet coverage.
You need to understand that you cannot capture 100% of the market. The leader can count on a maximum of 70% of the market.
The number of new customers (or increased loyalty) can be increased by 1000 * 0.7 = 700 per week, or 3500 per month.
If we are making a store, we need to take into account the conversion of visitors into buyers: on average it is from 1 to 5% (you need to study this topic in more detail). For example, we found out that 3%. We find that ideally we can make approximately 100 additional purchases through the online store.
By calculating the average bill, knowing the markup on goods, and the cost of creating and promoting a website, you can determine how economically justified it is to create such a store.

But that's not all. You can study trends and relationships in topics across the region and Ukraine. For example, we see that the number of sites dedicated to the topic of interest to us is three times less than on average on the Internet. This means that competition in this market will increase in the near future. Perhaps foreign partners and representative offices will come who have long mastered the Internet space.
The share of visitors in the “Food” section in the Odessa region is higher than the average for Ukraine, but lower than on the Internet as a whole. This is explained by a significant share of users from regions who rarely visit online stores and are more interested in entertainment (weather forecasts, horoscopes, news, sports...).
In addition, Odessa's share in “food” is lower than the average share of Odessa in Ukraine. All this suggests that the market still has significant (at least double) growth potential in this category. But you need to carry out “work with clients”, in other words, create demand, teach users to buy.

And some other interesting conclusions can be drawn.

I don’t pretend to be the absolute truth, but such an analysis should be done BEFORE the start of work in order to have an idea of ​​the potential effectiveness of your site.
This is the first stage, preparatory.
Next, you should study in more detail the audience in this topic, where they live, what they are interested in, what are the prices for promotions in this section.
The next step will be to study competitors, build a SWOT table, both the competitor as a whole and ways of promotion on the Internet.
Next, we study our own website: what users do, where they go, what they are interested in, where they leave from... etc....

Let me once again emphasize an important conclusion: creating a website is just the initial stage of your internet marketing, unless, of course, you seriously plan to deal with this issue, and not “for show.”

03/09/2006, Thu, 14:03, Moscow time

A company’s website is such a flexible tool that it can be used to solve various, even opposing marketing tasks, but only one of them is really good. Accordingly, defining the goals and objectives of Internet marketing before designing a website is the only way to create something truly effective.

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The type of goal chosen by a company for its work on the Internet determines the design of the site, the tools used on the site, the site navigation system, information content, and the style of presentation of information. In fact, choosing the type of site goal is the first major component of strategic Internet marketing planning (the second component is the type of target audience). Possible company goals (or rather classes of goals), formulated at the stage of preparation for the creation of a website, fit into one of four types (classes).

1. Reducing the costs of initial communication with a potential client. The tasks that are set for the site in this type of goal are to reduce the total time the company’s specialists work with the client during the entire communication process, which is achieved primarily by reducing the time of face-to-face and telephone communication.

Let's imagine the entire process of communication with a potential client as a ladder with many steps that must be moved sequentially to achieve the main goal - a contract. The first of these steps is familiarization with the product, the last is the signing of a contract (or another effective end of communication, depending on the business process - this can be delivery, installation, concluding an agreement for additional services, and so on). At some point, climbing the ladder of these steps in the process of communication, the client moves from working with the site to working directly with the company’s employees (or with employees of dealer companies), while it is obvious that the cost of working with the client is much higher in the case of face-to-face or telephone communication, however, it is somewhat more effective (due to the fact that a person always explains and convinces better than printed text).

In the considered case, the task of the site is to push back the moment of the user’s transition from working with the site to working with a company representative as far as possible to the end of the communications ladder, ideally to the very end (which is even implemented in some online stores or, even more often, in network services) . Due to this shift, the time of company employees is saved and, accordingly, the cost of making a sale is reduced.

This type of goal is applicable for all those cases where the size of the target audience is large, the product is relatively mass-produced, its purchase requires little time to make a decision, and usually no additional consultation is needed for the purchase. At the same time, the margin on sales is small, and the sales process has been worked out. It is these indicators that are optimal for choosing the “cost reduction” type of goal. Typical examples: online stores of computers and components, perfumes, books, cheap and not so much household appliances, as well as advertisements for tourist trips (especially in mass destinations).

As is already clear, all online stores belong to this type of goal, however, not only them. There are companies that do not carry out direct retail sales, however, they stimulate retail demand in their advertising, such as, for example, representative offices of Western automakers. In this case, the site’s task cannot be completed to the same extent as in an online store, however, the user must come to the store or travel agency or car dealership, etc., already prepared: he must have knowledge that what exactly he needs, how much it might cost, what are the terms of delivery and other characteristics important for a given type of product. In this case, the site minimizes the time of communication with a company representative, reducing the company’s costs for making a sale. The entire necessary amount of preliminary information necessary to prepare the client is provided, accordingly, by the website.

2. The fastest possible contact with a potential client’s company representative during the initial sale. In contrast to the previous type of goal, the goal here is to reduce the time a potential client spends working with the site and quickly switch him to a representative of the company as such. Or, in “communication ladder” terms, get the prospect to make the transition from online to offline at the very beginning of the ladder. The cost of working with a client increases significantly, but at the same time the efficiency of working with him also increases, since, as already mentioned, a living person convinces and explains much better than text on the screen. As a result of this work, the percentage of successful communications significantly increases (conversion of site visitors, callers, etc. into customers), and the average purchase size also increases.

The scope of application of a website built with this type of goal in mind includes companies whose business is characterized by large margins, relative to which sales costs are insignificant, high technological complexity of the goods or services supplied, a long time for making a purchasing decision, a large volume of approvals - in a word, all those cases where the purchase one way or another requires a large amount of negotiations and cannot be formalized via the Internet.

Examples include construction services, real estate, engineering equipment, and home help services (as well as most services in general). In addition, this includes all industrial equipment, which in most cases is completed, assembled and delivered individually for each order.

3. Increasing the loyalty of the company’s customers in order to make repeat sales. Unlike the first two types of goals, there is no talk of primary contact here. The audience of a site related to this type of goal is people who are already customers of the company, and the task facing the site is to provide them with ongoing support in using the company's products or services. Thus, sites related to this type of goal lie beyond the customer communication ladder we discussed in the previous case.

The need for sites of this type arises in the case of a long product consumption cycle, on the one hand, and the need (or at least desirability) for additional instructions, accessories, consumables, drivers, etc. for use, on the other hand. The most obvious example is all kinds of technological devices from computers to digital cameras and other equipment or software. Thus, the websites of large international companies that supply these types of products are largely focused on user support.

In addition, an increase in loyalty is required for services with periodic payment - these are various types of services, starting, for example, with access to the forex market and ending with subscriptions to news publications (closed sections). In this case, consumption of the product does not require any additional information; however, the site’s task is primarily to increase user loyalty. Large service companies work for this every day.

Finally, the task of increasing user loyalty is faced by the websites of large companies whose products are already well known (for example, Coca-Cola). In the markets where this company is present (actively present), the share of users who need to be attracted for the first time is insignificant, however, it is necessary to carry out daily work to re-attract the client to the company's products. And this task can also be partially transferred to the site, and then the site will relate specifically to this type of goal.

4. Attracting and retaining a target audience for the purpose of selling contacts with this target audience to a third-party advertiser. In other words, sites belonging to this type of purpose are called “advertising platforms”. Unlike all three previous goal types, this goal type does not directly relate to sales - neither primary nor secondary.

Ensuring a stable audience for an advertising platform is work to increase audience loyalty, but, unlike sites of the third type, it is necessary to get the audience to show loyalty, commitment not to the company’s brand, which is not so important, but to the site itself, to the one presented on information, the format of this information, etc.

Sites belonging to this type of goal can perform two tasks - these can be simply advertising platforms, built to make a profit from advertising, or “pocket” advertising platforms, that is, platforms created for the sole purpose of getting the target audience to a thematic site and redirecting a significant part of the target audience to the company’s “selling” website, most often of the first type.

04Feb

Hello! In this article we will talk about marketing in simple words - what it is, why and how to apply it in an enterprise.

Today you will learn:

  1. What relates to marketing, functions and types of marketing;
  2. What are the marketing strategies for an enterprise, and what does a marketing plan consist of?
  3. What is marketing in business, and how to distinguish it from business for the consumer;
  4. What is it and how not to confuse it with a financial pyramid;
  5. What is Internet marketing and its advantages.

The concept of marketing: goals and objectives

There are at least about 500 definitions of marketing. Often, with such an abundance of definitions of this concept, it is difficult to understand what relates to marketing.

Explaining in accessible language, marketing - This is the activity of an organization aimed at making a profit by satisfying the needs of customers.

In a broad sense, many marketers view marketing as a business philosophy, that is, the ability to study the market, the pricing system, predict and guess customer preferences, effectively communicate with them in order to satisfy the needs of consumers and, accordingly, make a profit for their enterprise.

Based on the definition, it is logical that the purpose of marketing at the enterprise is to meet customer needs.

And the famous economic theorist Peter Drucker notes that the main goal of marketing is to know the client so much that the product or service can sell itself.

To achieve the organization's goals, marketing activities involve solving the following tasks:

  1. Detailed market research, in-depth analysis of customer preferences;
  2. A thorough study of the pricing system in the market and development of the organization’s pricing policy;
  3. Analysis of competitors' activities;
  4. Creating a range of goods and services for the organization;
  5. Release of goods and services that meet demand;
  6. Service maintenance;
  7. Marketing Communications

When solving marketing problems, you must be guided by the following principles:

  1. Studying the production capabilities of the enterprise;
  2. The process of planning methods and programs for marketing a product or service;
  3. Market segmentation;
  4. Constant updating of goods and services, ways of selling them, improvement of technologies;
  5. Flexible response of the organization to constantly changing demand.

Marketing functions

Marketing performs a number of functions:

  1. Analytical;
  2. Production;
  3. Management and control function;
  4. Sales function (marketing);
  5. Innovative.

Analytical function involves the study of external and internal factors influencing the organization, the study of consumer tastes and the range of products. It is worth noting that it is necessary to analyze the internal environment of the organization in order to control competitiveness in the market.

Production function includes the development and mastery of new technologies, organizing the production of goods and services, organizing the purchase of material and technical resources necessary for the enterprise. In addition, the production function refers to the management of the quality and competitiveness of the finished product or service, that is, maintaining the quality of the product in accordance with established standards.

Control and monitoring function provides the planning and forecasting process at the enterprise, organization of the communication system, information support and risk management.

Sales function includes the pricing and product policy of the organization, provides a system of product distribution and expansion of demand.

Innovative feature in marketing, plays the role of developing and creating a new product or service.

To solve problems and achieve set goals in marketing activities, it is necessary to apply the following marketing methods:

  • Studying the market situation:
  • Survey;
  • Observations;
  • Methods of generating demand and stimulating sales;
  • Analytical methods:
  • Analysis of the external environment of the organization;
  • Consumer analysis;
  • Analysis of existing products;
  • Planning the range of future products;
  • Development of pricing policy;
  • Information methods:
  • Advertising;
  • Personal selling;
  • Propaganda;
  • Consultations.

Thus, based on the definition, goals, objectives, functions and methods of marketing, we can conclude that the science of marketing is focused exclusively on the consumer and meeting his needs.

Types of Marketing

Depending on demand distinguish between the types of marketing presented in table 1.

Table 1. Types of marketing depending on demand

Type of marketing

State of demand Task

How to solve the problem

Demarketing

High Reduce demand

1. Increase the price

Conversion Marketing

Negative Create demand

1. Development of a plan for promoting a product or service

2. Re-release of goods

3. Cost reduction

Incentive Marketing

Absent Stimulate demand

The reasons for the lack of demand must be taken into account

Developmental marketing

Potential Make potential demand real

1. Determine customer needs

2. Create a new product or service that meets these needs

Remarketing

Decreasing Restore demand

Look for ways to revive demand again

Synchromarketing

Hesitates Stimulate demand

1. Adjust the price (lower if necessary)

2. Promotion of a product or service

Supportive Marketing

Corresponds to offer Stimulate demand

Correctly conduct pricing policy, stimulate sales, conduct advertising, control costs

Adversarial Marketing

Irrational Reduce demand to zero

Stop releasing the product

  • Demarketing – a type of marketing that is aimed at reducing demand. This situation is possible when demand significantly exceeds supply. To deter consumers, the organization raises the price of a product or service, refuses advertising and tries to reorient the client.

A striking example is the use of demarketing in the cold season, when the need for electricity increases significantly. Since this can negatively affect the entire electrical grid system, very expensive equipment may fail, marketing workers develop programs to reduce demand or redirect it.

  • Conversion Marketing – a type of marketing aimed at creating demand. It is used in case of negative demand for a product or service. To do this, they develop a plan for promoting a product or service, lower prices or re-release the product. To promote a product or service when demand is negative, advertising and PR campaigns are used.
  • Incentive Marketing used when there is no demand. It is necessary to stimulate demand, taking into account first of all the very reason for the lack of demand.

There may be no demand for products if:

  • The product is not relevant on the market;
  • The product loses its value;
  • The market is not ready for the emergence of a new product or service;

To interest the buyer and increase demand, the enterprise uses tools such as a sharp reduction in the cost of a product or service, increased advertising activities, the use of trade marketing methods, etc.

  • Developmental marketing – a type of marketing in which potential demand must be converted into real demand. That is, you should determine the needs of customers and create a new product or service that meets these needs.
  • Remarketing used in situations where demand needs to be revived. That is, the demand for products is falling and it needs to be restored by introducing new characteristics and features into the product or service. For example, first Clear Vita ABE anti-dandruff shampoo based on the new zinc pyrithione formula and the unique Vita ABE formula was created for both men and women. Subsequently, Clear experts proved that the scalp of men and women has a different structure, and released a line of Clear Men and Clear Woman shampoos.
  • Synchromarketing – a type of marketing in which it is necessary to stimulate demand, as it fluctuates. The tasks of synchromarketing include smoothing out irregular demand by establishing flexible prices and various ways of promoting products. This type of marketing is usually used in the case of seasonal demand or any other cyclical fluctuations, as well as climatic factors that greatly influence demand. A striking example of the use of synchromarketing is the offer of various set lunches and business lunches in cafes and restaurants during the daytime at a reduced price. Since there are much fewer visitors during the day than in the evening, daytime prices are therefore lower than evening prices.
  • Supportive Marketing An organization uses it when demand matches supply and it is necessary to continue to stimulate demand for a product or service. To maintain demand at the proper level, it is necessary to conduct a correct pricing policy, stimulate sales, conduct advertising, and control costs.
  • Adversarial Marketing is used when there is constant irrational demand for products, which is contrary to the interests and well-being of the population. In such a situation, it is necessary to stop production and carry out anti-advertising. Counter-marketing tools are used on products such as alcohol and tobacco products.

Depending on market coverage There are mass (undifferentiated), concentrated (targeted) and differentiated marketing.

Undifferentiated Marketing Concept involves a product intended for all market segments. Product differentiation is not carried out; products are sold at low prices.

With concentrated marketing the situation is the opposite. Products or services are designed for a specific group of customers.

When using differentiated marketing forces are directed to several market segments. But it is worth noting that a separate offer is created for each market segment. This type of marketing is considered more promising in relation to the previous two types.

Marketing Strategies and Marketing Plan

There are 2 levels of marketing at an enterprise:

  • Tactical;
  • Strategic;

Tactical, or in other words, operational marketing involves developing short-term plans to achieve the organization's goals.

Strategic Marketing aimed at developing long-term prospects for the enterprise’s operation in the market. That is, the internal capabilities of the organization are assessed on the influence of the external market environment.

Marketing strategies are classified into the following groups:

  • Market expansion strategy;
  • Innovation strategy;
  • Diversification strategy;
  • Reduction strategy.

Market expansion strategy otherwise called a concentrated growth strategy. That is, the company's strategy is aimed at horizontal development, conquering a larger part of the market in the fight against competitors, and improving existing products or services.

Innovation strategy otherwise defined as an integrated growth strategy. That is, the organization’s activities are aimed at vertical development - the creation of new goods and services that will have no analogues.

Diversification strategy the organization chooses if the probability of “survival” in the market with a certain type of product or service is very low. Then the organization can produce a new product or service, but at the expense of existing resources.

Reduction strategy used when an enterprise remains on the market for a long time for more efficient operation. An organization may undergo reorganization or liquidation.

Marketing strategies are also distinguished by market coverage:

  • Mass (undifferentiated) marketing strategy;
  • Differentiation strategy;
  • Individualization strategy;

Mass Marketing Strategy aimed at the entire market as a whole. Market advantage is achieved by reducing costs.

Differentiation strategy focused on capturing most of the market segments. The advantage is achieved by improving the quality of products, creating new designs, etc.

Consumer Personalization Strategy aimed at only one market segment. The advantage is achieved through the originality of a product or service for a specific target group of customers.

Developing a marketing strategy consists of seven stages:

  1. Market research;
  2. Assessment of the organization's capabilities;
  3. Assessing competitors' capabilities;
  4. Setting marketing strategy goals;
  5. Research of market segments and consumer interests;
  6. Positioning development;
  7. An economic assessment of the strategy is being carried out.

Stage 1. An analysis of macroeconomic indicators, the political, social and technological situation, as well as the influence of international factors is carried out.

Stage 2. To assess the capabilities of an enterprise, economic analysis, marketing analysis, production capacity assessment, portfolio assessment and SWOT analysis are carried out.

Stage 3. Includes an assessment of the organization's competitiveness. Competitors' strategies, strengths and weaknesses, and ways to establish superiority over competitors are studied.

Stage 4. At the next stage, the goals of the marketing strategy are established.

Stage 5. Includes research into customer needs and methods and time to market.

Stage 6. Specialists receive certain recommendations for enterprise management.

Stage 7. An assessment and analysis of economic strategy and control tools is carried out.

To summarize, we can conclude that a marketing strategy reflects a plan to achieve the company's business goals, which evaluate the production capabilities and financial budget of the organization.

The marketing plan is inextricably linked with the marketing strategy of the enterprise, that is marketing plan implies a special document reflecting the organization’s marketing goals and objectives, as well as marketing strategies that will be applied in practice.

To specify the marketing plan, a marketing program is drawn up, which will indicate who is doing what to do and how to do it.

To implement a marketing plan, you must adhere to the following principles:

  • The principle of rolling planning;
  • Principle of differentiation;
  • The principle of multivariance;

Rolling planning principle applied depending on the market situation. This principle involves introducing adjustments to the current plan. For example, a marketing plan is designed for 3 years, but the market situation changes quite often, so amendments and adjustments to the plan are required annually in order to be competitive.

Principle of differentiation assumes that an established product or service cannot be liked by everyone. Therefore, using this principle, it is possible to reorient to serve any category of consumers selected according to certain criteria.

The principle of multivariance involves the simultaneous development of several marketing plans for all possible situations.

The structure of the marketing plan is as follows:

  • Determine the mission of the organization;

The mission of the organization involves identifying strengths in order to become successful in the market.

  • Compile a SWOT analysis of the enterprise;

SWOT-analysis is a situational analysis that reflects the strengths and weaknesses, capabilities of the organization, as well as threats under the influence of internal and external environmental factors.

  • Set marketing goals and strategies;

It is advisable to set goals and define strategies for each area separately.

  • Development of the organization's pricing strategy;
  • Selection of market segments;

In this block, when choosing market segments, the emphasis is on reducing costs and increasing sales efficiency through sales volume and prices.

  • Scheme for selling a product or service;

Here it is necessary to highlight the product sales channels, whether they work effectively, in what quantity and how they are implemented in the organization.

  • Implementation tactics and sales promotion methods;

At this point, it is necessary to decide on methods for selling goods or services that could be successfully used both in the short term and in the long term.

  • After-sales service policy;

Here we need to constantly improve the after-sales service system. It is necessary to compare the level of service with competitive enterprises, improve the qualifications of employees, and monitor their communication skills. It is also worth providing certain guarantees and additional services to your customers and comparing them with your competitors.

  • Conducting an advertising campaign;
  • Formation of marketing costs;

When drawing up a marketing budget, it is necessary to take into account all planned expenses, income and highlight the projected net profit of the organization.

Thus, it should be concluded that a marketing plan is simply necessary for the successful organization of an enterprise. This is a kind of map that helps you navigate the economy as a whole, conduct an effective business and be competitive in the market, receiving high profits.

Business Marketing or B2B Marketing

Marketing in business or otherwise they call it marketingB2 B (business-to-business, business for business) is determined How business relations between industrial enterprises in the market, where goods and services are not for final consumption, but for business purposes.

B2B marketing should not be confused with marketing B2 C(Business to Consumer, business for the consumer), which implies marketing relations in the market where goods and services are created for final consumption.

Marketing in business has distinctive features and characteristic features:

  • Demand for business activities stems from consumer demand;
  • An organization purchases a product or service to achieve its goals. That is, a business purchase is targeted in nature rather than a consumer purchase. The client buys this or that product to satisfy himself. That is, consumer purchase is emotional in nature;
  • Volume of goods or services purchased. An enterprise buys goods and services not individually, but in tens and hundreds of pieces, that is, it makes large purchases;
  • The risk of buying a business is much higher than buying an ordinary consumer. The profit of the organization depends on this;
  • Business purchases are made by professionals in their field. The purchasing decision is made by several specialists in this field;
  • In B2B marketing, the seller knows the buyer's needs better and interacts closely with him;
  • An enterprise that makes a business purchase hopes for further cooperation with the seller. Therefore, the provision of guarantees, service and installation plays a significant role here.

Network marketing

Network marketing (MLM - multi level marketing) is a technology for selling products from manufacturer to consumer, which is advisory in nature and transferred from person to person. At the same time, the so-called distributor can not only sell the product, but also attract new sales agents to the company.

The business plan of an MLM company assumes that distributors:

  • Have you used this product yourself?
  • Sold the product to customers;
  • They attracted other sales agents to create a network of business entrepreneurs.

The manufacturer himself is responsible for organizing delivery. He ensures that the goods are delivered to the distributor's home. For effective work of sales agents, master classes and seminars are provided to develop sales skills and achieve success in their business.

For the entrepreneur network marketing is an attractive business because it does not require experience or a large initial investment in capital.

For the buyer network marketing also looks advantageous, since truly responsible MLM companies provide quality products and a guarantee for them. In addition, before purchasing a product, the consumer receives all the necessary information about it and receives the product at home.

Network marketing provides for active and passive income. The agent receives active income based on sales volume. And passive income is created through the creation and active development of a subnetwork of distributors.

However, although at first glance, network marketing seems to be an attractive business, in addition to its advantages, it also has a number of disadvantages.

Table 2. Advantages and disadvantages of network marketing

To attract a potential distributor to an MLM business, you can use the following methods:

  • Look for partners among your surroundings;
  • Look for partners among your friends and acquaintances;
  • to promote products;
  • Look for partners through social networks;
  • Meet new people and attract them to this type of business.

When it comes to network marketing, there is an immediate association with such a definition as a financial pyramid, the activities of which are prohibited in the Russian Federation.

The main difference between network marketing and financial pyramids is that the profit received by MLM companies is divided between distributors, taking into account the contribution of each. And the financial pyramid receives income due to the number of people attracted and their contribution to a non-existent product.

In addition, network marketing can be distinguished from a financial pyramid by the presence of:

  • Marketing plan;
  • Company guidelines and articles of association;
  • The products themselves;
  • Training systems.

The financial pyramid does not have a specific marketing plan; it is very confusing and incomprehensible. The company's management is anonymous and, moreover, there is no charter of the enterprise. There is no assortment of goods, there are only a couple of units of questionable products. There is also no training system provided or it costs a certain amount of money, for which they issue cheap advertising brochures.

Network marketing provides training for sales agents on a free basis, or training CDs, books or videos on the Internet are issued for a symbolic amount.

Vivid examples of the successful development of network marketing are the companies Amway, Avon, Oriflame, Faberlic and Mary Kay.

To summarize, we can conclude that network marketing is aimed at promoting a product and rewarding the distributor for the work done, and the main goal of a financial pyramid is to attract people and their financial investments.

Internet Marketing

Internet marketing is currently a relevant innovation for promoting goods and services.

Internet Marketing represents the application of traditional marketing activities on the Internet.

Purpose of Internet Marketing– making a profit by increasing the number of visitors to a website or blog, who in the future will become buyers of certain goods and services.

Tools for increasing sales of goods and services and increasing website traffic are:

Helps to create and strengthen relationships with a specific target group that is subscribed to the newsletter.

  • Traffic arbitrage – purchasing and resale of traffic at a higher cost;

Internet marketers face the following challenges:

  • Promote products and services using;
  • Create interesting content for the target audience;
  • Process the information received;
  • Monitor the operation of the site;
  • Maintain the company's image on the Internet;
  • Recruit specialists with a narrow focus to perform a specific job.

Online marketing includes the following elements: product, price, promotion, place.

Internet marketing includes strategies such as:

  • Viral marketing;
  • Comprehensive online marketing;

Viral Marketing is the most challenging yet most rewarding online marketing strategy. It is focused on creating such interesting information that everyone will view hundreds of times, constantly like and repost.

Viral attraction of people is used using:

  • Use of videos;
  • Use of online games;
  • Use of the company website;
  • Writing a provocative article that can cause resonance and will be discussed among users;

Effective work and success can be achieved by combining viral marketing on social networks with advertising.

The main advantages of viral internet marketing are simplicity and speed of action. In addition, viral Internet marketing is cost-effective, as it does not require any special expenses. The Advertising Law does not apply to viral advertising. That is, there is no censorship or any restrictions, which makes Internet marketing freer.

Essential disadvantage of viral online marketing there is insufficient control over the process, and the supplied material may be distorted.

Comprehensive Internet Marketing implies a set of various resources and advertising channels to promote a product or service to the market.

The structure of integrated Internet marketing is as follows:

  • Strengthening traditional marketing;
  • Processing all market segments;
  • Advertising profit reports;
  • Sales control in branches;
  • Building a unified system for promoting a product or service;
  • Telephony construction;
  • Sales training;

Under PR (PR) means increasing brand awareness. This strategy should be used by all companies, regardless of position, as it helps increase company revenue, attract potential customers, and the brand becomes recognizable and popular on the Internet.

Having considered the goals, tools and strategies of Internet marketing, we can highlight its advantages:

  • Large target audience coverage;
  • Obtaining information at home;
  • Low advertising costs.

Conclusion

In conclusion, I would like to say that marketing is a very interesting science for entrepreneurs. Knowing how a marketing plan is drawn up, when and where to apply this or that marketing strategy, you can remain competitive in the market for a long time, while making a good profit. And, having mastered Internet marketing, you can achieve even greater success in.

Internet marketing emerged in the early 1990s when text-based websites began posting product information. Now Internet marketing is something more than the sale of information products; now there is trade in information space, software products, business models and many other goods and services. Companies such as Google, Yahoo, and MSN have elevated and segmented the online advertising market by offering local advertising services to small and medium-sized businesses. Return on investment has increased and costs have been reduced. This type of marketing has become the basis of modern capitalism, allowing anyone with an idea, product or service to reach the widest possible audience. The use of the term "Internet marketing" generally refers to the use of direct response marketing strategies traditionally used in direct mail, radio and television commercials, only here they are applied to the Internet business space. These methods have proven to be very effective when used online due to the ability to accurately track statistics, coupled with the ability to be in relatively constant contact with consumers. This analysis capability is now used everywhere, and that is why you can so often see terms such as ROI - return on investment rate, conversion rate - effective visit rate (also known as website conversion), and also instantly get statistics on sales, demand, etc. d.

The main goal of Internet marketing is to obtain the maximum effect from the potential audience of the site. Conventionally, all Internet marketing tools can be divided into two groups:

· Search engine marketing, which includes search engine promotion of a website, contextual advertising.

· Not search marketing, which includes media advertising, viral marketing, social media marketing, and Internet PR.

Separately, it is worth mentioning web analytics, which shows how effectively the site operates, whether the funds invested in website promotion pay off, and much more. Internet marketing, as a set of measures for working with a website, goes beyond the actual attraction of traffic to the website. This is not just website promotion, it is already business promotion on the Internet. The entire range of work within the framework of Internet marketing has three main goals:

1) informing the audience about services/products and its advantages;

2) arouse interest in the service/product;

3) “push” those interested in purchasing.

Achieving the realization of all three goals through a single advertising campaign or thematic promotion is extremely difficult, but combining all available tools and capabilities is possible. All work on promoting a business on the Internet can be divided into the following stages:

1. Getting to know the business. At this stage, various types of research are carried out. It is necessary to understand what we will offer and to whom, determine the characteristics of the product and the company, the target audience and the competitive environment. At the same stage, the history of the project is studied: what was done previously and what is being done now, what goals were set and what results were obtained.

2. Preparation for promotion. At this stage, a promotion company is planned: determining methods and means of promotion, site audit, budget calculation, determining all necessary work to prepare the site, determining the main indicators of the effectiveness of the site, advertising campaigns. Implementation and configuration of web analytics tools.

3. Getting started: performing planned work, collecting statistics and processing data.

4. Generating reports, analyzing effectiveness, making changes to the action plan. From the very beginning, the effectiveness of the measures and actions taken is monitored, which allows time to focus on problem areas and ultimately achieve all the goals set. Pricing, Internet marketing is not a template event, the specific set of services and actions depends on the specific project, so it is not always possible to publish a price list in advance.

The word “marketing” comes from the English marketing - sale, trade. Its classic definition was given by Philip Kotler, an American scientist who laid the foundation for marketing as an independent science. According to Kotler's definition, marketing is a process that increases the value of a company's product and results in a profitable exchange between buyer and seller. Thus, this definition is based on the process of exchange and the value of the product to the consumer. Another definition is given by The Chartered Institute of Marketing (CIM): marketing is the process of managing the identification, forecasting and satisfaction of consumer needs in order to make a profit. Unlike the previous definition, this interpretation considers marketing as a process aimed at the future, that is, anticipating the needs of customers, and determines the results of the process - increasing profits. Generally speaking, there are about a thousand definitions of marketing, each of which emphasizes one or another aspect of marketing.

There are two big misconceptions among marketers: The best people will win the marketing war. This statement contradicts the principle of force. The stronger the position a company occupies, the more “middle peasants” and “white collar workers” it gathers. The likelihood of hiring several thousand “best” people is statistically close to zero. Despite this, market leaders continue to be large companies that focus on quantity rather than quality. In a marketing war, the best product wins. The problem is that, according to consumers, the leader always has the “best product” - after all, he is recognized by the majority.