The Advantages and Disadvantages of Promoting via the Internet

Published: 19th February 2010
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Content is Timeless

Internet Promotion also provides the advantage of being enduring. Whereas participation at a trade fair or conference loses sales impact, once it is over, and an advertisement in a newspaper or business magazine may quickly lose its sales generating value within a day or two or as soon as the next issue is released; Internet Promotion is often timeless. Apart from the dates and sometimes prices, much of your website content remains valid years after.

Real Time Statistics For Measuring Success of Promotion Campaign

One of the most significant advantages of Internet Promotion is that its success is measurable. Marketers can use tools that provide real time statistics, on unique visitors, repeat visitors, click through rates (CTR) on advertisements, thereby allowing them to evaluate the effectiveness of a promotion campaign. This enables marketers to determine what works for their particular market and to make timely changes in their marketing strategies.

Time Saving

Another important advantage of Internet Promotion is that it saves time since it generally does away with counselling on product uses and benefits, service information and sales administration. Visitors can access "frequently asked questions" to help themselves, and can buy online, without the involvement of staff. This saves time and money. So, whether 10 or 10,000 visitors visit the site, the increased cost is marginal whilst the savings can be immense.

But like any business approach, Internet Promotion is not without its risks and weaknesses.

Disadvantages

Difficulty in Attracting Customers

Small business may not have the resources to pay for paid directory inclusion, pay per click inclusions and often have to rely solely on search engine optimisation or word of mouth to drive traffic to their sites. With millions of businesses selling the same product and services, competing with more established businesses can be frustrating and costly venture for small business.

On the other hand, larger companies can offer promotions, pay for directory inclusions, implement pay per click campaigns as well as employ the "who is who" in internet marketing to develop campaigns that generate traffic and leads.

Difficulty in Evaluating Legitimacy of Transaction

Another notable disadvantage of doing promoting businesses online is that it may be difficult for the businesspersons and consumers to thoroughly evaluate the legitimacy of a transaction. Small businesses are particularly vulnerable to thieves using stolen credit cards and stolen information to do online transaction.

With Internet credit card and identity fraud on the rise, small businesses are forced to finance costly security measures to reduce their vulnerability to fraudulent transactions.

Salespersons and Customers are Isolated

Another disadvantage of promotion via the Internet is that the customers and businesspersons are isolated. There is little personal contact between customer and salesperson prior to and after the sales is closed. Thus, the prospect for repeat sales may thus be diminished. Entrepreneurs are therefore compelled to adopt marketing strategies to drive online users back to their site.

From all indications, it appears that the advantages of Internet promotion, far exceed the disadvantages. With adequate knowledge, entrepreneur can benefit significantly from Internet promotion, especially small business owners.

More and more, the growth and outreach of the Internet's, its ease and accessibility for customers is becoming inevitable. Small business would therefore be well advised to start their web advertising function in order to improve their competitiveness online.

To read about customer oriented and dealing with angry customers, visit the Good Customer Service Skills site.

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