SRI SHARADA INSTITUTE OF INDIAN MANAGEMENT-RESEARCH (A unit of Sri Sringeri Sharada Peetham, Sringeri) Approved by AICTE Plot No.

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THE PROJECT REPORT ON Internet Marketing vs Traditional Marketing

SUBMITTED TO Prof. Sartaj Khera

SUBMITTED BY Ankita (20100127) Sarmistha Purkyastha (20100) PGDM-2nd YEAR

DECLARATION
I hereby declare that the project on Internet Marketing vs Traditional Marketing of of PGDM to Sri Sharada Institutes of Indian Management Research is my own original work for the fulfillment of the requirement for nay course of the study. I also declare that no chapter of the manuscript in whole or part is lifted and incorporated in this report from any other work done by me or others.

Place: Date:

Acknowledgement It is said, the most important single word is WE and the zero important single word is I. This true even in todays modern era .It is absolutely impossible for a single individual to complete the assigned job without help and assistance from others. I would like to acknowledge to my sincere gratitude to our CMT& MD Rev. Swami ji (Dr.) Parthasarathy and my project guide Prof. Sartaj Khera for helping me in this project work. I am thankful to all my friends and batch metes for their help in completing this project work. Finally, I am thankful to my entire family members for their great support and encouragement. Ankita (20100127) Sarmistha Purkyastha (201001) PGDM (2010-2012) Sri Sharada Institute Of Indian Management- Research

Table of contents :
Introduction Traditional marketing .................................................................................................. Product ................................................................................................................. Price ...................................................................................................................... Place ................................................................................................................... Promotion ........................................................................................................... Internet Marketing ..................................................................................................... Product ............................................................................................................... Price .................................................................................................................... Place ................................................................................................................... Promotion ........................................................................................................... Traditional Marketing VS Internet Marketing ........................................................... Product ............................................................................................................... Price .................................................................................................................... Place ................................................................................................................... Promotion ...........................................................................................................

Comparison model Analysis ................................................................................................................. Conclusion.

INTRODUCTION
When companies start business, their main goal is to make profit and accomplish a successful growth. Therefore different strategies are used to sell products or services that they offer.Companies try to create, promote and sell products or services that could satisfy their targetcustomers. Marketing is a strategy that can make a business grow and thereby become morepowerful. It is crucial to know what kind of marketing to use in every area to achieve highsales rate, market share and the wanted image. Marketing is considered to be a process of exploring, creating, and delivering value to satisfythe needs and wants of a target market at a profit.1 When Neil Borden introduced the concept of the "4 P's" of the marketing mix (Product, Price, Place, and Promotion), marketers wereoffered opportunities to exploit each aspect of those elements and thereby satisfy their customers needs and wants. Marketing has to some extent stayed the same in many years but as technology has developed,it has had its affects on marketing. Entrance of Internet into our lives has brought many possibilities and that has also affected marketing. Since the evolution of Internet, the Internet selling or e-selling has become ever more established in every day life in the society and is even replacing the traditional medium, to some degree. It is a new channel for communication which brings along new opportunities for marketing. The concept of marketing is extensive and there is high number of studies done on this subject. These studies discuss different tools of marketing and how to use them to guide businesses to success.

Traditional marketing
Marketing is considered to be a collective process where individuals or groups can exchange goods or services based on their needs and wants. The content of this process was presented as marketing mix by Neil Borden for the first time in 1953, representing the mixture of useful elements for marketing. This theory of marketing mix has been analysed and rewritten about by many different authors through time. One of the authors that have written about this theory and explained his point of view about the elements of marketing is Philip Kotler, whose marketing mix is presented in this thesis. He considers the marketing mix, a mixture of different tools or instruments for pursuing a marketing plan. In traditional marketing the wants and needs of customers are being discovered and satisfied, through traditional channels of communication such as face to face communication,magazines, catalogues etc. The aim is to create products and services which sell themselves by being what customers need and want. Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organizational objectives.The marketing mix theory of Philip Kotler, the 4Ps are presented here in the following order,Product, Price, Place and Promotion.

Product
According to Kotler20 Product is the solution to customers wants or/and needs. There are different aspects of product that needs to be considered. Some examples of these are the design, function and quality of the product. The marketer needs to know what kind of appearance such as size, colour and generally design of product is wanted or needed. It is also important to know what kind of functions the customer is looking for in the product. To know what is required by the market, there is a need for research and studying the market. There are 5 product levels, which create the customer value hierarchy. These levels are called core benefit, basic product, expected product, augmented product and potential product. Core benefit is the benefit of the product which the customer would be buying. For example buying a spa ticket, one is buying the benefit of it which in this case would be relaxation and rest. Basic product is the benefit turned into a product, providing the needed tools to create the benefit for the customer. Expected product is what would fulfil customers expectations mainly based on what is promised by the marketer. Augmented product is a product that fulfils more than what the customer expects. Potential product is the possible wanted or needed product by customers. Service is also a part of this P. It is the intangible good that a company can offer to its customers and it is difficult good to provide, for satisfying customers needs and expectations. One reason for this is the difficulty of measuring it fitting the needs and expectations. Offering warranty is part of this P too. By providing warranty, the company is not only offering a good customer service but also showing that it believes in its own goods.

Price
Compared to other Ps in the marketing mix, pricing is easiest and quickest to adjust. As Kotler presents21 it is an important part of the marketing strategy and it sends out a message about the product, company and the image. The decision of pricing is dependent on what goals the company wants to achieve. Does the company want bigger market share, maximum profit or possibly a specific position in the market etc? Setting a price is a process and based on the marketing mix theory there are 6 steps in this process. These are Selection of pricing objectives, Determination of demand, Estimation of costs, Analysing competitors costs, prices and offers, Selection of pricing method and Selection of final price. The firm should decide on the objectives that it wants to achieve which would make the decision of price setting clearer and easier. The demand and price are depended on each other and therefore it is an important point for setting price. Different kinds of possible costs such as fixed costs, variable costs etc. should be observed and estimated when setting the price. This is one of the issues that have a large affect on price setting. Analysing competitors costs, prices and offers is also very important in order to be able to compete with them and not stay behind. Based on the different steps of the price setting process mentioned above, the company should decide on a pricing method and set the final price accordingly. Payment terms are part of this P. The different type of payments, credit terms and different payment periods are issues to decide upon in a marketing process. The marketer should consider different options and figure out the best way for different situations, depending on the wanted result and the needs and wants of the customers.

Place
Place in marketing can be about location in the means of store, factory and storage. Also the decisions on distribution channels and transport are part of it.22 The company should act on the goals they want to achieve by the location they choose. Some examples of the factors that have an affect on this decision are the cost of the chosen

location, the amount the company can spend in this area, the profitability of it and the space needed. The choice of place can be very radical for the success of the business. For example, a company chooses a place outside the city because of the wide space needed and the cost of it or a company that opens a new store and wants to get the customers attention by situating it in a very busy and crowded area where possible customers would drop in when passing by.

Promotion
Promotion is one of the important Ps of 4 Ps of marketing mix. The focus is mainly on how the company could reach its targeted customers and communicate its message to them. The figure below demonstrates the objectives of promotion mix which will be explained further on in the text.

Sales promotion is a key factor in marketing campaigns, creating an incentive for customers to buy the product or service. Sales promotion contains offers such as free trials, prizes, warranties, coupons and etc. These are the offers that can attract mainly the customers that are looking for a new thing and they probably would not become loyal customers. This strategy can be used in high brand similarity markets where the seller wants to reach short term high sales response and not so high permanent gain in market share. In a low brand similarity market, this strategy can have a more permanent affect or gain on market share. The amount of existing brands has grown by time and the competition is getting tougher. Another issue rising from this is the price-oriented customers that are looking for the better offer. For companies to be not just one of the brands they have to try more and present more interesting promotion offers or better promotion tools than the competitors are using. Promotion can be used in different ways, for example by targeting the new customers or loyal customers or rewarding both in different ways. The bigger or more exceptional the offer, the more attention the company can get from the customers.

Sales force is the face of company towards customers when providing or offering customers solutions in either services or products. Their working process has become from just selling to more complicated task. The sales representatives are the ones that bring the needs o fcustomers and the company together and create the mutual satisfaction.

Public relations involve creating and planning a program or event where the company can promote and in some cases protect the products or the image. Some examples of these events are presenting news or important information about the company to the press by having a press conference. Another example can be informing and advising management about the public issues and company position and image in different type on situations.

The aim is to prevent bad publicity and therefore it is important that the managers are aware of what kind of practices they should avoid and what kind to get involved with to present a good will for the company. The importance or effectiveness of this tool should not be underestimated compared to the other tools in promotion mix. This tool plays a great role in presenting and keeping the company image, values and position which is very important.

Advertising is any paid form of non personal presentation and promotion of ideas or good or services by an identified sponsor.25 Advertisement can be done in many ways. Advertisement is a way of communicating the offer to customers and it can be done in different ways, in different shapes and through different channels. Most companies get an outside help from the experts such as an advertising company, to make the decisions about what the best way to do their advertising would be. The company that needs the advertising should decide on the budget they have for the advertisement, what is the message they want to give to the customers, which media they want to use and how they want to measure the results. These are some important decisions to be

made and it can easily happen that some companies under- or over-spend for advertisement.

Direct marketing involves using different channels to reach the customers. This communication can be done through face to face meeting, mailing, telephone, catalogue and Internet. With direct marketing the company seeks for a measurable response from customers. This is one way of building long term relationship with customers; for example, by sending customers a birthday card on their birthday, information or club membership offers etc. Direct marketing creates a personal feeling communication towards the customer. Companies can be more aware of how to target which groups of customers. Face to face selling is the most original one and is still used in many companies where they send out their sales personal to meet the potential customers. The sales person communicates directly with the customer and the offers and the deals are made.Then there is direct mailing where the company sends a letter to the customer. This letter can be an offer, announcement or reminder. Direct mailing tools have developed by time and these added tools are fax, voice mail and e-mail. Emailing is one effective tool because of the time and money that can be saved by using it instead of sending the regular mail.In catalogue marketing, companies send their catalogue to targeted potential customers where they have the opportunity to order and purchase the products or services by responding through Internet, telephone, mail or email. This way of shopping has grown among customers because of the comfort of shopping while being at home.

Telemarketing is another way of direct marketing where the sales personal call the customers and tries to sell a product/service making an offer and possibly a deal. Other way of telemarketing is providing a service for those who are already a customer and need support. So the communication goes in both directions in this situation, depending on the purpose of either party. There are some media channels used for direct marketing

such as TV, radio and magazines etc. For example there can be a number mentioned in these communications which customers can use for ordering something they might get interested in. This way they are given the opportunity to act when they are interested to purchase a good seen or heard through the media. This way of marketing gives companies the opportunity to give different kinds of offers to different kinds of possible buyers.

Internet Marketing
Internet is used as a communication channel as a part of direct marketing. It has had a large impact on marketing since it was invented and realized to be an effective marketing tool. But the meaning and usage of it has changed through the years. In the beginning it has been used mainly for communicating to customers through e-mailing and getting response from them. It has helped the companies to be able to target their potential customers more personally and knowing more about them has helped in knowing how to approach different customers to get to their needs. Nowadays the concept of Internet marketing has extended and opened more opportunities to companies in their marketing. The website of the companies online has got a lot of attention and has become a very common media for presenting the company, its offerings and image. Internet has become a strong marketing tool in itself which can be compared separately to other marketing tools. This growth can be seen both on a technical level and accessibility of it for customers. Today many people have access to the Internet. 65% of all male and 53% all female population of Sweden use Internet daily.With this large amount of possible customers, the companies have access to a larger audience. The technical development of the Internet and computers has made it possible for businesses to communicate their message and image with no limitations. Internet is a new marketing tool that can be used by companies in order to reach their Customers. Internet marketing is defined as the

application of the Internet and related digital technologies to achieve marketing objectives and support the modern marketing concept. Internet marketing is often presented as a new theory of marketing however some argue that basic concepts from the traditional marketing are still valid. The basics of marketing mix are still applicable and Internet offers new opportunities to adapt them.

Product
The Internet leads to faster discovery of customer needs, greater customization of the products to the customer needs, faster product testing, and shorter product life cycles. Internet offers the opportunity of developing new products or services. To develop a product, there is a need for research on customers needs. Internet provides the opportunity of offering a core prodcut that satisfies the customers fundamental needs, but it also enables the companies to offer additional services such as interactivity or more information about the companys core product. On Internet, a picture or description will replace the physical product offered in the traditional marketplace or in stores. Providing a complete and relevant product information is crucial in order for the customers to get a realistic picture of the product and to make the product offered more attractive. Since customers can not touch, feel or try the products chosen on Internet, companies that have online shops should offer warranties for products sold.33 This practice increases customers confidence thereby their willingness to buy on Internet. Companies that have an online store should offer services of high quality to their customers. Services offered on Internet by a company should reflect the following factors in order to satisfy customers: reliability, responsiveness, competence, ease of use, security, and productportfolio.

Price
Compared to the other elements of the marketing mix, Price is the most flexible element since it can be adapted quickly to the markets demand than other elements. Price on the Internet has become very competitive. There are two reasons for that ; one is price transparency on the Internet as it is much quicker and easier to compare prices by visiting companies websites or by using price comparison sites.35 The other reason is the ability to reduce costs such as store space and staff costs. In this sense, Internet is

considered as the most cost-effective marketing tool. Internet offers new methods of payment. The online payment that uses mostly credit cards is seen as an efficient, convenient and flexible payment method for both companies and customers. In fact, customers are the ones who fill all the needed information such as their personal and credit card information. This helps companies to save money and time by reducing administration work. Moreover, customers have the possibility to pay their bills at any time and any place they wish if only they have access to the Internet.38. However, security and privacy issues make customers less confident when using this method.

Place
The Place element of the marketing mix traditionally refers to where the product is distributed to customers. Internet offers a new way for distributing products through online selling. Allen and Fjermestad argue that the Internet has the greatest implications for Place in the marketing mix because it has a large market place.39 People can make a purchase decision anywhere they are thanks to online selling. With Internet, companies can expand from local market to both national and international markets. Internet can also be used to exploit new markets. Companies can gain the advantage of the low cost of advertising internationally without the necessity of a supporting sales infrastructure in different countries.

Promotion
The Promotion element of the marketing mix refers to how marketing communications are used to inform customers about an organization and its products. Internet can be used to review new ways of applying each of the elements of the communications mix which are advertising, sales promotions, PR and direct marketing by using new media such as the web and e-mail.Internet offers a new, additional marketing communication channel to inform customers of the benefits of a product and assist in different stages of the buying process. By using promotional tools on the Internet such as online offers,

frequently updated information and direct e-mail reminders, companies can encourage customers to visit their sites.

Internet Advertising: It is a form of advertising that uses the Internet to deliver messages about a company and attract customers. It can be done in two ways: by creating a website which can help a company to deliver all information to the potential customers or by using banner advertisements which can lead the visitor to the relevant website. It is critical for a companys website to be well designed and informative in order to attract many visitors in the target group. Sales promotion: With Internet, marketers have a great opportunity to offer sales promotions such as competitions or price reductions to those who visit the companys website. This can encourage the customers to visit that website again and this way of interacting with the customers provides the means for the company to build a long term relationship with their customers.

Public relations: Internet is a new medium for Public Relations (PR). Internet offers companies the opportunity to publish the news directly while in traditional marketing they would wait for periodical publications. They can use Blogs, Podcasts / Internet radio shows, Online newsrooms and media kits.

Direct marketing: Internet provides companies with a new tool for direct marketing and advertising that may be cost effective and provide maximum delivery to targeted customers.By using e-mail addresses, the company can establish a continuous dialogue with customers.

Traditional Marketing VS Internet Marketing

In this section the authors make a comparison between the main points of both traditional marketing and Internet marketing. Here the 4 Ps are mentioned in comparison to each other to give a clearer idea of different issues that either traditional marketing or Internet marketing carry in their tools.

Product
Product in traditional marketing is tangible for the customer where as through a website in Internet marketing is just a virtual image.The customer can not experience the quality and size of the product by seeing it on the website in the same way as seeing the product in a physical store. Not being able to reach and feel the product physically, can create doubts for the customer and have an affect on his/her purchasing desicion. When it comes to range of products offered through Internet compared to physical stores, there is an advantage of possibility for a company to offer a wide range of products on their website. The issues that can appear here are cost and space for inventory and store space itself, where there is a connection between cost and space. One important issue to point out is the customer service and how it can reach the customer. It is more difficult to provide customer service through Internet compared to face to face contact when the customer visits the physical store. The customer can get a quick response and reaction from the staff when getting a service in the physical store, where as through Internet the customer is dealing with a so called fixed service. And eventhough there might be possibility for communicating through e-mail or support chat function, the response and communication of service will not be as personal and quick as it could be when communicating face to face.

One issue that can affect the customers choice of purchase is the warranty of the good. This gives comfort to customers, both in traditional marketing and Internet marketng but most importantly it gives the secure feeling to those purchasing online. The customer that can not see and touch the product when purchasing it would feel more sequre knowing that there is a warranty on the product and this would make the choice of purchase easier and less risky.

Price
The pricing of a product can be based on the costs of its process in reaching the market.When a company does Internet marketing it has a bigger opportunity to save costs and therefor possibility to have lower prices. One of the reasons for this is the cost of space for keeping the products or the cheap way of communication through inernet such as communication by e-mail. When marketing through Internet, the competition is very though which affects the pricing reasons. The competitors are a click away when a potential customer is searching for information on the Internet.Since payments for purchase through Internet are done by credit card mostly, there can be some security issues that create problems. For example a customer would feel more secure paying in the physical store where they can have more control over the payment process, where as purchasing online they would be taking a risk when giving the credit card details.

Place
In traditional marketing, companies have the opportunities to decorate the stores in order to create a specific athmospher that can attract customers. Some attractive tools to create that atmospher can be music, colors, etc, but through Internet marketing it is almost impossile to create a real sensation since a website is just a virtual image. Eventhough many of the websites try to create an atmospher by adding the same tools for attraction, they can not create as real experience as can be created in the physical store. The atmosphere of the store is mentioned to be very important for sales of the products. For example if you see an unorganized store just filled up with some clothes you hardly feel tempted to go in and look for anything. The way the store is decorated gives a message about the company and its style.52 When one thinks about this, one can realize the importance of the physical existence of the store. Think for example how the company could offer the same atmosphere through the website. As an example we can consider H&M, based on their website their aim is to have the same atmosphere on their website that they have in their stores.But in the end the experience of stepping into the store is different than clicking on computer when shopping. Internet helps companies to be reachable at any time, regardeless of openings hours that phyical stores require. Also the possibility for the customers to reach the store location online and the range of customers that can do that is much wider compared to the physical location of the store.

Promotion
When it comes to promotion, one thing is clear in difference between the communication through traditional tools and Internet and that is the speed. Speed of getting the message of advertisement, news or any type of information through to customers is very quick through Internet. This is a very important issue in the competetive world of business. Another difference between promotion by Internet and promotion by traditional ways is the durability of the marketing message the marketer wants to communicate with the customers. In traditional manner, the message would receive attention during a limited amount of time,for example as it is aired on TV or sent out as paper advertising. Where on the Internet, the marketers message to the customers can exist constantly on the companys website for example and it is accessable by the customers 24/7.Through a website, a company can present itself in many ways where the customer can study different aspects of the company and get to know it well where as this is not possible in the same way through traditional tools for promotion.56 For example the complexity of wide range of information can not be easiely fitted into a magazine advertising or TV commercial etc. The tools for traditional promotion can be used mainly in communicating the message shortly and consistantly. There is of course the burden of maintaining a website or online commercials that consumes time, resources and money. But this should be weighted out by the accessability and opportunity they provide. Another issue is the damage that a failed or crashed website or other Internet service can have on a companys image.57 A good website is very important for succeeding in online marketing. According to Sunday Times, some important guidelines for a good website for a company are: * Provide clear information on contacts, delivery and refund policies. * Think "user journey" rather than individual pages. * Let shoppers browse without having to register. * Keep sites simple and easy to use. * Offer an effective search engine. * Market the site online and link it to search engines. * Provide consistency of experience. * If the Internet does not offer the full bricks-and-mortar range, say so.

* Give complaints ID numbers. * Build trust. Nowadays a large group of consumers have the problem of time but have the money to spend so therefore it can be easier for them to shop online, by saving time when spending. The image, speed, design and generally every aspect of the website of a company is very important and in a case of failure it can have big damages to the company that cant be even compared to lost sales. Communicating through Internet gives an opportunity to the marketer to reach the targeted group easily and have a continues relationship with them.Of course there are some great advantages in communicating through traditional tools of promotion such as face to face communication with customers where the company can get straight feedback and can measure the result more quickly. The communication in this way is both sided where the customer has more opportunities to react on the information or offer received.

The Comparison Model

ANALYSIS
Going through different aspects of both traditional marketing and Internet marketing, it becomes obvious that the marketer uses both of them to reach the same goal. This goal that is brought into attention in both theories of traditional marketing and Internet marketing is satisfying customers wants and needs. Even though all the marketing tools were affected by the changes that came with Internet and the possibilities that it brought, the main change is focused on promotion. Promotion is the tool used for communication and Internet has provided marketers with a different channel for communication to the customers. A marketer can be communicating anything possible, for example news or offers related to marketing tools such as product or place and for that, it is crucial to choose the most effective channel for communication. So mainly it is a matter of finding the best way of getting through to customers and make sure that the chosen channel for communication enables the delivering of the wanted message in

most effective and profitable way. When Kotler presents the 4 Ps, he gives the impression of the simplicity of the market and how it can be dealt with by going through the steps of marketing mix. In this theory the complicated process of marketing might be too structured and simplified. This provides a good educational material for marketing students but may result in undermining the complexity of marketing in actual companies. By going through the 4 Ps mentioned in the Internet marketing theory, it is obvious that the entrance of Internet to the business world has changed the way the marketer reaches the customers. This has introduced some advantages to marketing that were not possible before. At the same time the entrance of Internet in marketing has deprived some advantages, such as face to face communication with the customers. As these theories try to create an understanding of usage and functions of each tool, they show how they all are connected to each other. In the marketing mix theory, the issues in one marketing tool can affect another marketing tool. The 4 Ps are as one chain in the marketing process. For example, the location of the store can affect the cost of the process and this can affect the pricing of the product. This can go on in any direction between the 4 Ps which can be perceived by studying them deeply. This connection becomes especially obvious when comparing different issues between Internet marketing and traditional marketing.

Internet marketing
PROMOTION

Even though the companies interviewed have websites, not all of them seem to consider it as very important way of marketing. A reason to this might be the lack of direct feedback from the customers and thereby the lack of direct results. When they mention the effectiveness of a marketing tool, they mention the ability of seeing its results. They do believe that it is a useful tool that is added to other marketing tools but it is considered as a complimentary tool mainly. The possibility of Internet marketing being more effective than traditional marketing is not evident based on the answers of those interviewed. Marketers can reach a wide group of customers fast and easy

through Internet. They can communicate their message to them either by e-mail or by announcements on their website. Website is a very powerful tool for communication from marketers to their customers. A company can present any information wanted to be communicated about their history, offers, news, future plans etc. on their website. This way they keep their customers always informed and involved. All of the interviewed managers for this thesis have referred to the importance of their website mainly mentioning that it has given them possibility to reach a wide range of customers easily and fast. They all seem to appreciate the advantages of Internet and use it. There are different advantages in both marketing in traditional ways and through Internet. One can go through the different aspects of them and weight the importance of them in different situations and depending on what the desired result is. Reviewing the answers received from the interviewed marketers, we can notice that they consider the traditional marketing tools of great importance in their marketing process. They do not imply that the traditional marketing tools would be replaced by marketing through Internet, though they all have added Internet marketing to their process. One of the interviewed companies, Heart of Brands, considers the Internet marketing very powerful. Based on the interview answers, Internet has given them great opportunities where they can not see themselves succeeding without it.

PLACE, PRICE & PRODUCT There are some advantages and disadvantages to Internet marketing that are mentioned in the comparison model in chapter three. There are some possibilities given to marketers by Internet that have added value to their business. Companies can provide wide range of products on Internet since keeping them in some storage instead of a store is much cheaper. This way they have two advantages connected to each other, offering lots of products to satisfy a large and versatile group of customers, at the same time cutting cost by having the products in a cheaper and larger space. Through this strategy of being able to cut cost, the prices of the products can be low. Furthermore, the competition between companies remains an issue; compared to the competition that a company faces on Internet, the competition is less tough in traditional

marketing. When the customer is going through different competitive stores physically, there are many things that can limit her/his visiting and finding out more about all the stores. On the other hand, a customer searching for information and products through Internet can easily and quickly find any product, offers and any information related to prices etc.

Traditional marketing
PROMOTION

Going through the comparison model presented in the theory part in chapter three the different aspects that differentiate traditional from Internet marketing become clearer. The advantages pointed out about traditional marketing are to some extent irreplaceable by any way of marketing through Internet. A face to face contact with the customer is one important advantage that can not be performed through Internet and can have a large impact on the customers experience. It is a way of communication and providing personal service that can create a relationship between the customer and the marketer. Face to face communication creates an active marketing situation where both customer and marketer have an opportunity to give and receive information and feedback in person. This way the measurement of the result and feedback from customers is easier and quicker. As it comes to attention, the advantages of traditional marketing such as personal service, quick feedback, quick and easy way of measurement of results and responses are connected to face to face communication Most of the interviewed companies in this thesis seem to believe that meeting the customer face to face is one of the most important and effective ways of marketing where they can receive direct respond, feedback and have a more personal relationship with the customers. Here we can realise how face to face marketing is separated from what direct marketing through Internet is. The lack of face to face communication and advantages followed by it are obvious, when we consider marketing through Internet. The only company that did not put much emphasis on this matter of the face to face

communication was Heart of Brands. They do not consider this to be a big issue when it comes to Internet marketing and it doesnt affect their decisions. It seems that by considering the advantages of Internet marketing, they have found a balance between the two marketing approaches. They seem to believe that the benefits of Internet marketing are radical for their success. Events seem to be a common marketing tool used by these companies. Events such as store openings are mentioned to be very important for Tiger of Sweden because of the atmosphere, feeling and generally the experience that it creates both for the marketer and the customers. This is one clear point that separates traditional marketing from Internet marketing. The communication in Internet marketing lacks the personal relationship, personal service, direct response and sense of reality which are the points that seem very important for these companies interviewed. The events are said to be a great tool for building a personal relationship with customers. Especially one advantage is mentioned to be very important, which is the possibility of measuring the responses when communicating and getting sales results. When a company can easily measure results and is able to connect it to the work done and the channel of communication used, it creates appreciation of that marketing tool used for it. So the connection between a marketing tool that is considered effective and the simplicity of the measurement of its results can be noticed here. The easier to measure the respond of a used marketing tool, the more convincing marketing tool it seems. Those companies interviewed that do not have online store have been succeeding well by their sales through their physical stores. Some have a plan for opening an online store in the future and consider it as an expansion of their sales possibilities. What is considered most effective point in Internet marketing is the possibility of giving the message out to a large group of people very effectively.

PLACE, PRICE & PRODUCT Another advantage mentioned in the comparison model is the physical access to products. This is an experience that can not be replaced by marketing through Internet,

since it is impossible to feel the material, try it on and see the size, material and colour fitted on you,through Internet.

The other advantage connected to this matter is the physical existence of the store itself which can affect the customers by creating a pleasant shopping atmosphere for them. There is a strong statement of opinion from the interviewed managers that the face to face contact and communication, and physical existence of products and place is very important for their marketing. As most of the interviewed marketing managers of the chosen companies imply, and according to the annual report of H & M, the physical stores are very important for their business. It is important that customers can feel the products and try them on and also get direct service at the store. In this way, the focus is on Product and Place and these market themselves. The atmosphere and existence of the physical store were pointed out by the interviewed managers to be very important matters. The atmosphere can strongly affect the customers in their decision of entering the store and purchasing of products. The atmosphere of the store can also communicate the firms image to its customers. The message and experience that the store provides for the customers can not be replaced by other means such as Internet. These are some important points brought up by the interviewed managers, which emphasis the differences between the physical location of the store and the store on Internet. When it comes to payment of the purchase, the issue of security is raised. The customer feels more secure when paying in the physical store where he/she has more control over thesituation. When the payment is done through Internet, the customer can not be as sure about the process after giving her/his credit card number through a public web page. There are of course different payment methods for purchases made on the Internet that provide a higher security, such as paying after receiving the products or paying through the Internet banks secure solutions. Based on the statistical data presented in this thesis one can see that purchase of goods through Internet is growing and the more common it becomes, the more customers feel secure about it and they gain more trust in this way of purchase.

VIEWS ON INTERNET MARKETING VS TRADITIONAL MARKETING

As mentioned earlier the main focus in this subject appears to be promotion and the channels used to communicate to customers. As it seems, the part of marketing that has been put mostly emphasis on is events, public relations, magazines, catalogues, TV advertisement and being in face to face contact with customers. All of these companies have a website and some have also online stores. The impression given by the interviewed people implies that they all put a lot of emphasis on traditional marketing. There is though a comment from Heart of Brands which has a good point. The interviewed person mentions that what tool is considered most effective depends on the goals that the marketer wants to achieve. Based on her answer, different tools have different purposes and are effective if used according to that purpose. The channels mentioned to be used for promotion are both from traditional marketing and Internet marketing. TV, magazines, catalogues, PR and e-mailing are used for some direct marketing and websites are used as well. These are the direct way of marketing to customers,communicating any message. It seems that websites are nowadays a part of the marketing tools used but also treated just as one additional complementary tool. It is though obvious for the marketers that websites can give good opportunities in reaching customers anywhere and as appears in answers received from H & M, the extra sales that can be made through the Internet is positive but not at a comparable level with the sales in physical stores. Those companies interviewed that do not have online store have been succeeding well by their sales through their physical stores. Some have a plan for opening an online store in the future and consider it as an expansion of their sales possibilities. What is considered most effective point in Internet marketing is the possibility of giving the message out to a large group of people very effectively. By getting some answers from those who work with different marketing tools everyday and see the results of them, the connection between the two different approaches, traditional and Internet marketing, and their comparison becomes clearer. The advantages or lack of them found earlier among the theory of either one seems to be matching with comments received from interviewed people.

There are different comments on what is considered a successful way of marketing based on these interview answers. As H & M marketing manager believes that the combination of both internet marketing and traditional marketing is helping them

towards success, even though their most effective tools are their catalogues and physical stores. The comment from Vero Modas marketing manager is that there is no specific way to success but until now as it seems they have relied mainly on the tools of traditional marketing even though they do use Internet marketing. The manager of Heart of Brands has a strong faith on Internet marketing and seems to believe that it has radically added value to their business and affected their success. When it comes to face to face marketing, it is clear that Tiger of Sweden relies a lot on it and believes that it is an irreplaceable way of marketing when it comes to its effectiveness. Polarn & Pyret seems to put great emphasis on their physical store as their marketing channel.

Referring to advantages of Internet marketing

Following advantages were referred to by VeroModa, Polarn & Pyret, H&M and Heart of Brands: -Fast speed of communication, -Possibility to present the company -Easier to reach more customers -Communicating with target group

CONCLUSION
we can not generalize and suggest which approach is better than the other after comparing Internet marketing with traditional marketing. Depending on companies goals, products and target group etc. the right choice of marketing tools can differ There are many sides to different ways of marketing, the advantages and disadvantages that they can have. There can also be different goals to achieve and different types of target groups to reach, which can affect on the right choice of marketing tools. Even though it can seem confusing but it appears as all aspects in the marketing process depends on

each other and affect the decisions made about marketing approaches used. There is no meter to measure the efficiency of either way of marketing to give a 100% correct answer that we are looking for. All that is available is theories that support specific ideas about this subject, some marketers experience and point of views. In the frame of this thesis with the possibilities available keeping in mind the limitations, there has been some relevant data gathered that has helped the authors and hopefully the readers of this thesis to come to a conclusion. It has become more and more clear that the combination of both traditional marketing and Internet marketing would be the most effective approach but if there is a need of making a choice between the two, a company should consider what is to be achieved and which approach would be appropriate specifically for reaching that goal and target group. Placing both traditional marketing and Internet marketing against each other to figure out the more effective one was difficult because they complement each other. There are different kinds of benefits in using either one which makes it difficult to weight them against one another.