Internet Marketinga)Explain the major roles played by various intermediaries in internet marketing.b)Outline the relationship between the internet and the value chain.
The internet is affecting all businesses in all industries. The intermediaries that are most important now are probably the web site hosts, search engines and advertising agencies. A company's web site is crucial to its online presence and access to customers, not just for companies doing business on the web. Companies need a good showing in the search engines and need to know how to use advertising to reach their customers in their web life. In this way, companies are beginning to use social media to reach thier customers and enhance thier web presence.
Internet is having a major impact on the nature of intermediaries used in business and industries. On one hand it is leading to decreasing role of intermediaries such as wholesalers and retailers in moving goods from manufacturers to the final consumers. On the other hand it is leading to development of newer kind of intermediaries that facilitate the selling and buying and selling process without becoming a part of it themselves for example eBay.
Internet has impacted the value chains in different industries heavily. It has enabled manufacturers and service provider to provide better value to customers at reduced cost. The simplest way in which this is happened is the mechanism of Internet shopping. It provides more convenience to the buyer. At the same time it reduces selling cost of the seller. Internet has also enabled companies to enhance the value of their products to the customers by customizing products to individual customer preference and requirements. For example, tailored jeans of Levi enables a lady to order a pair of jeans made to her specification s of fabric and style, and cut to her size. Further before ordering the jeans, she is actually able to virtually "try it" using a special computer screen with advanced IT capabilities.