There’s no doubt that the Internet has changed, in a number of different ways, how companies of all sizes market their products or services. So, when I was asked to give a talk recently on the impact that the Internet has had on Marketing strategy, I focused on 6 key things.

Firstly, and perhaps most importantly, remember that the Internet is just a tool. Relatively easy and inexpensive to use perhaps, but it’s still just a tool. So, you can use it to get your products or services to your target market but it won’t help you figure out who should be in your target market, which products or services you should offer them or the best way to do that. That’s what your Marketing strategy is for.

Point number 2 – start by revisiting your Marketing Strategy and figuring out how to adapt it to use the Internet. Many companies don’t review how well their Marketing strategies are working on a regular basis. This is an opportunity to do just that. Remember, a winning strategy applies the most effective mix of marketing tools (Product/service, price, promotion and distribution channels) to a well defined target market. Ask yourself, for example, if you can use the web to drive down costs (Amazon have no bricks and mortar retail stores); if you can advertise on or link to other web sites to increase traffic to yours; or if you can use blogs or publish articles to build your reputation as experts in your field?

Third point – you can offer new or additional services because of the Internet. I work with a wonderful assistant called Michelle. Her industry, Virtual Assistants, didn’t exist before the Internet came along and made virtual organizations possible. Many manufacturers and distributors now allow their customers to access progress and delivery status information about their orders over the Internet – a new way to add value. One of the people who came to my talk is a Disc Jockey. People who are considering his service can find out if he’s available for their party or wedding by looking at his schedule or review his musical library, all on-line.

Point number 4 – the Internet can make promoting your products cheaper while giving you more flexibility. Ask any realtor if the Internet has made it easier for them to promote the homes they have for sale and they’ll talk about the virtual tours available on their web sites. You can’t do those in a regional newspaper. You can change the copy in a banner advertisement on your own or someone else’s web site more quickly than you could change a radio or magazine advert. There are a number of web sites on which you can post articles you’ve written for little or no cost – getting P.R. with fewer hassles than trying to get published in periodicals. Email is cheaper (to create and send) and more flexible (it can be changed instantly to reflect feedback) than direct mail pieces sent through the postal system.

Point number 5 – you can close a sale over the Internet. According to a survey conducted by Marketing Sherpa (another web based business http://www.sherpastore.com) the number of orders processed by e-commerce sites increased by more than 20% in 2006 over 2005. The same survey says that roughly the same amount of traffic comes from organic clicks (mainly from search engine optimization or SEO) as from paid clicks; the majority of consumers prefer sites with peer-written product reviews; and that over 50% of shoppers abandon their carts (or purchase) before completing it. There is clearly still work to be done in the e-commerce field but the survey says that by the fourth quarter of 2005 online sales were 3% of total retail sales, up from 1% five years ago.

The final point – testing and measurement apply to the use of the Internet too. If you’ve read some of my other articles you’ll know that I believe in testing new products, advertising pieces, pricing strategies etc. by showing them to 6 or 7 of the clients you can trust to tell you what they think, as opposed to what they think you want to hear. The same thing applies to web pages, email campaigns, banner advertisements etc. The Internet also lends itself very well to my second strongly held belief – measure the results of everything you do. You can

· Check the popularity of keywords before you use them at http://inventory.overture.com/d/searchinventory/suggestion/

· Track how many visitors come to your site, which pages they visit, which pages they enter and leave from and a myriad of other metrics. If your ISP doesn’t provide them use Google Analytics

· See how many of your emails bounce, how many are opened and so on by using a provider like Vertical Response http://www.verticalresponse.com/ or Constant Contact http://www.constantcontact.com/features/index.jsp

But don’t only look at the data; use it to improve your Marketing strategy.

Which brings me back to my first point, the Internet is only a tool, an enabler and you don’t gain a competitive advantage simply by using it. It’s how you use it that can give you an advantage over your competitors. Don’t be tempted to leap on to the Internet because it’s relatively cheap and quick (and that’s a combination that’s hard for a Scotsman to resist). There’s no doubt that the Internet can enhance your Marketing strategy but you have to decide how to make it do that. And then, as is often the case with marketing techniques, it becomes a process of trial and error in order to get the best results.

To share your experiences, to take issue with anything I’ve said or to get some insight in how to integrate the Internet into your Marketing strategy, send me an email at jimstewart@profitpath.ca or call me at 416-258-9610.

© Copyright ProfitPATH, a division of JDS & Associates Inc., 2007

Before becoming CEO of the Canadian subsidiary of a multi-national corporation, Jim gained over 25 years’ business experience in major corporations (including subsidiaries of Pitney Bowes, Xerox and ITT) in Canada and Internationally. His orientation and expertise saw him spend much of his time starting and growing new or existing businesses. Since 1997, he has specialized in helping the owners of small and medium size enterprises, successfully achieve their growth objectives. Three of the companies with whom he has worked have received Business Achievement Awards. In 1995, Jim completed an MBA in the Executive Program at the University of Toronto, finishing on the Dean’s List. He also holds a Bachelor of Commerce degree from the University of South Africa. Visit Jim’s web site http://profitpath.ca/ for more information.