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The Impact of Network Marketing on Traditional Marketing

Source: Shangpin China | Type: website encyclopedia | Date: August 21, 2012
Beijing website construction Shangpin China: Traditional marketing is committed to establishing, maintaining and relying on layers of distribution channels, and investing a lot of promotion expenses in the market. In the Internet era, traditional marketing techniques such as personnel promotion, market research, advertising promotion, and distribution agency will be combined with the Internet and make full use of various resources on the Internet to form a new marketing model that invests people at the lowest cost and obtains the largest market sales. Network marketing will impact the traditional marketing strategy in the following aspects.

1. Impact on traditional product strategy

As a new type of media, the Internet can conduct market research worldwide. Through the Internet, manufacturers can quickly obtain feedback information on product concept and advertising effect tests, as well as test customers' different cognitive levels, so that it is easier to track consumers' behavior and preferences. Therefore, in the case of massive use of the Internet, it is no longer impossible to provide different goods to different consumers. The famous Dell company's direct selling of computer equipment on the Internet does not stipulate a unified internal configuration. Instead, the customer can propose a configuration scheme and requirements of the equipment as needed, and the company will produce and sell according to the customer's needs. The driving force of this kind of customerization is the final consumer, rather than the traditional interest of distributors. At the same time, the new communication ability of the Internet has accelerated this trend. Therefore, how to more effectively meet various personalized needs is a major challenge for every online company.

2. Impact on traditional pricing strategy

If the price standard of a certain product of the company is not uniform or changes frequently, customers will realize the price difference through the Internet and may be dissatisfied with the company. Therefore, compared with the current various traditional media, the advanced network browsing function of the Internet will make the varying and different price levels tend to be consistent. This will have a huge impact on companies that have distributors overseas and adopt different prices everywhere. For example, if a company offers a price discount of 2 ra to customers in a certain place, Internet users around the world will learn about the transaction, which may affect businesses that pass through distributors or do not need discounts. In addition, agents who search for specific products through the Internet will also recognize this price difference, thus aggravating the adverse impact of the company's price discrimination strategy. In short, the Internet will lead to the standardization of international price levels or at least narrowing the price differences between countries. This is indeed a serious problem for companies that implement differentiated pricing strategies.

3. Impact on traditional distribution strategy

In the network environment, manufacturers can directly contact with end-users through the Internet, so the importance of intermediaries will be reduced. This situation will lead to the following two consequences: ① The traditional international distribution network established by multinational companies will significantly reduce the barriers to entry for other small competitors or new entrants. ② For manufacturers who sell their products directly through the Internet at present, their after-sales service is undertaken by the distributors. However, with the disappearance of their agency sales profits, the distributors will probably no longer undertake these tasks. Therefore, how to provide these after-sales services without destroying the existing marketing channels will be another problem that online companies have to face.

4. Impact on traditional promotion strategy

Internet marketing has turned the compulsory promotion into strengthening communication and contact with consumers. The traditional promotion is to take enterprises as the main body and instill consumers through certain media or personnel to strengthen consumers' acceptance and loyalty to their enterprises and products. Consumers are completely passive and lack of communication and contact between enterprises and consumers, This kind of promotion makes the promotion cost of enterprises rise year by year. While online marketing is a one-to-one and interactive marketing method, consumers can fully participate in the marketing activities of enterprises. Therefore, with the help of the Internet, enterprises can strengthen their communication and contact with consumers, understand consumers' needs, and more easily lead to consumer recognition.
This article was published on SEO website optimization Company Shangpin China //ihucc.com/
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Thank you very much for visiting our website. Please read all the terms of this statement carefully before you use this website.

1. Part of the content of this site comes from the network, and the copyright of some articles and pictures involved belongs to the original author. The reprint of this site is for everyone to learn and exchange, and should not be used for any commercial activities.

2. This website does not assume any form of loss or injury caused by users to themselves and others due to the use of these resources.

3. For issues not covered in this statement, please refer to relevant national laws and regulations. In case of conflict between this statement and national laws and regulations, the national laws and regulations shall prevail.

4. If it infringes your legitimate rights and interests, please contact us in time, and we will delete the relevant content at the first time!

Contact: 010-60259772
E-mail: [email protected]