The web is a meeting place where anyone can communicate with anyone
else. Against this backdrop, many promotional activities of specific organizations
have been taken place. Hoffman and Novak (1995) and Timmers (2000) argue that
there are a number of characteristics of the Internet such as 24 h online, ubiquity,
global availability, interactivity, one-to-one and/or micromarketing and integration
that make an important impact on marketing communications. Attracting consumers
to a marketers' website is critical to the effectiveness of web presence and
longer visits are a possible measure of success of these websites (Hoffman and
Novak, 1996). The opportunities to do business worldwide with the click of mouse
are enormous and enticing. Internet marketing—also referred to as web
marketing, online marketing, or eMarketing—is the marketing of products or services over
the Internet.
Internet marketing offers information and transaction efficiency but may
not necessarily lead to sustainable competitive advantage. It offers new
business opportunities that organizations have never experienced, if it can align with
the other elements of the strategy. It is important to emphasize that it is not
about internet-users but about customers. Unlike other mediums, the Internet offers
the potential to influence the customer by manipulating all the elements of the
marketing mix. As the networked world is characterized by virtual and
cross-functional integration, leveraging technology assumes significance to exploit the
immense potential offered by the net. Integrating content, format and access to
create virtual community of customers is paramount to create value and deepen
relationship with the customer.
The term `Viral Marketing', coined by the Harvard Business School
professor, Rayport (1996) and further popularized by Tim and Steve (1997), describes
e-mail practice of appending advertising of hotmail for itself in outgoing mail from
their users. When used offline, it is referred to as Word-of-Mouth (WOM)
communication, and when used online, it is called `viral marketing' (Juvertson, 2000). It
provides effortless transfer to others by exploiting common motivations and behaviors.
The name viral connotes that it can assume epidemic proportions if planned
carefully; each recipient of the message is a potential carrier. Thus, it can achieve
scalability by allowing customers to transmit messages in their reference groups (Helm,
2000) by lowering the cost of customer acquisition. |