Should both large companies and small businesses use internet marketing?

Marketing can be thought of as everything that is done to get a product into the hands of the customer, and getting them to pay for it. Using this definition, then every company should use Internet marketing if it helps to get its customer to select and purchase its product. In addition the cost of Internet marketing needs to be weighed against the benefits.

For large companies, there is little doubt that Internet marketing is essential in all four primary phases of the consumer decision journey: initial consideration; active evaluation, closure; and post-purchase. Depending on the products, the company can use Internet marketing to build brand awareness, improve brand image, understand customer needs, assist consumers in making comparison, provide information when requested, follow up survey and even to provide post sales support. B2C firms can also use the Internet to sell directly to the consumers, bypassing middlemen and retail outlets and provide an alternative distribution channel.

For small business, the use of the Internet marketing need to be evaluated more carefully in order to understand its effectiveness in reaching customers. Internet marketing has enabled many small businesses that sell product and services to reach an audience much larger than its local neighborhood and town. Through online sale via its own website or through third party websites like Amazon and Ebay, small businesses have been able to expand their geographic scope and reach customers in the rest of the country and even worldwide. At the same time, small businesses that provide good and services that must be consumed locally benefit less from Internet marketing. These include small businesses like local restaurants, laundromat, convenience store and salons. There is less potential for Internet marketing in these businesses other than to provide basic information, location, direction, basic communication, feedback and some promotion. For small businesses, there is more value to Internet marketing for the businesses that provide more differentiated products, for example local restaurants, than for businesses that provide generic products and services, like laundromat and convenience store. At the same time, with the fast growth in mobile advertising and location based marketing, there is additional potential for small businesses to creatively reach out to its customers through both marketer driven and buyer driven marketing. Services like Google mobile location based advertisment can provide a platform to advertise directly to customers when they are in the vicinity, while Zaarly.com provides a platform for small businesses to respond to request initiated by potential customers.