2. Online Marketing
2.1 Definition

There is no standard definition for the term of online marketing. It is a form of marketing where internet sources are used in order get in touch with customers (Bullhost, 2005). The strength of online marketing in particular is the velocity to send data and information to clients (Roth, 2004, p.36-39).

There are two different types of online marketing: On the one hand the passive online marketing which is about a website for itself. On the other hand there is the active online marketing which tries to reach potential buyers on the internet. This could be realised inter alia with newsletters, search engine marketing, branding and other tools. In addition to that there is the aspect of customer loyalty where customers need an incentive to visit the web page more than once, for example with news, forum, services, blogs, raffles and many other possibilities (Schradi, 2009).

Marketing is a process in the economy to satisfy the needs and desires of people or groups by producing, offering and exchanging products and services. This means that all activities of a company, internally as well as externally, are interpreted as the needs of a market. Marketing is known as an entrepreneurial mindset which seeks the consistent customer orientation. This connects the customer management, the improvement of customer needs, systematic planning and innovative solutions (Kotler and Bliemel, 2007, p.8).

Generally nothing has changed in the economic processes and the marketing in the last few years. On the one hand there are the sellers which offer a product and on the other hand the buyers which want to exchange a valid equivalent for the product. It does not play a role whether a process takes place online via the internet or offline via a shopping centre, the clue is that there is a transaction. With marketing you can achieve these business and financial aims (Barowski and Müller, 2000, p.7). But marketing is not just an isolated operational function, it is much more. It is the driving force that fills the whole organization with life and controls it. The objective of marketing is to produce customer satisfaction by building up a relationship with the customers, because the customer can expect a satisfaction of his needs for the long term (Kotler et al., 2006, p.17). The worldwide spreading of the internet has opened new markets and new communication channels for companies. This brings many benefits for the customers (Kotler and Bliemel, 2007, p.1128):

Ease
Customers can find information from any place at any time and can purchase whatever they want. They save much time if they buy online instead of in a shopping centre.

Comparison of information
Customers can easily access information about products, companies, competition and prices. There are many online portals like www.pricerunner.co.uk where one can compare the price and quality of products.

Low intrusiveness
In the online environment customers are not bothered by salespersons who want to use emotional factors to get a purchase.

The advantages of online marketing include the rapid market adjustments, for example by product or price change. The costs are lower than with traditional communication tools because with the new web 2.0 applications like blogs, forums or comments, it is very easy for a company to identify weaknesses in its products. The opinion of a customer is easier to access. These tools also help a company to build up a customer relationship. The internet also offers a wide range of controlling tools for marketers. With a classical TV advert it is difficult to measure how many people saw it, but with an online advert you get exact data of impression, clicks and conversions.

Max Adler Salzhemmendorf Webdesign

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