Internet Marketing Myths

There are nearly as many Internet marketing myths as there are Websites. Perhaps even worse, there are as many myths about Internet marketing as there are people missing the wave of marketing their business online.

In this edition of our newsletter we are going to explore a common Internet marketing myth, and explain that the Internet is not as frightening as you may have once believed. It is our goal to provide you with the knowledge you will need in order to make a better informed decision about your Internet marketing goals.

Internet Marketing Myth: Volume vs. Margin

by Mark Aaron Murnahan (blog)

We at YourNew.com, Inc. talk with many businesses representing many industries, and find that a lot of companies struggle with the scope or purpose of their online marketing presence. Much of their struggles come from myths about the Internet, rather than factual data. Many of the common Internet marketing myths we find are cemented in fear, indifference, and lack of understanding the benefits to an Internet marketing presence.

An Internet marketing myth that we have uncovered with many companies is that it will too dramatically change their way of doing business. Although this is often the best scenario, this does not have to be the case. Just because you choose to market your business online does not mean that your customers will have vastly different expectations or that it takes the selling out of your business. You still have all of the things that make your company great, along with the same obstacles. When you take your business to the Internet (or expand your Internet presence), you are enhancing your business, expanding your exposure, and potentially making the most important business decisions of your company lifecycle.

Although the offline and online market segments you will reach are converging, you are quite commonly dealing with a unique and expanded market segment when you market online as compared to your other marketing efforts. You are not giving up a market to reach this market, but rather growing your market reach. The additional market segment available to you online is one which you will find it exceedingly harder to ignore as your competition embraces this vast group.

Allow me to address one of the common Internet fears that I have found over the past decade. This is the fear of "Sales Volume vs. Profit Margin"

Sales Volume vs. Profit Margin

We find that a concern many companies express is that their Internet ventures may serve to improve the sales volume of their business at the cost of reduced profit margin. This is perhaps the biggest fear, with the very least supporting evidence. That is, indeed, a myth.

"it is common to achieve an even higher profit margin from your online sales"

First, it is important to understand that it is common to achieve an even higher profit margin from your online sales than offline sales. This is for multiple reasons, but can include cost factors as basic as a lower cost of aquiring the sales lead, and lower cost of inventory, inventory management, and accounting. This is also largely because online shoppers are often far more motivated by company credibility and shopping convenience than by saving a couple dollars.

"every buyer and every sale is unique"

Second, let's say that you are in a highly competitive industry where you fear that if you advertise your pricing online you will never be able to see the same profits from your non-Internet customers. A good example of this is the automobile industry. The same example works for any industry, but for this purpose, let's use cars. Too many automobile dealers fear that because they have a car advertised online that they must sell each car at their advertised lowest price on the Internet. One really quick answer to this is in the form of a question ... "Does this happen when you advertise with your local newspaper or television?" Of course not. You probably do not even offer the same special pricing on television as you do in newspapers or yellow page advertisements. You offer a specific vehicle and you advertise that unit at that price. If you commoditize yourself and forget that every buyer and every sale is unique, you do so at your peril. Many people will pay more for the same things they have always sought ... service, convenience, company reputation, and presentation. The list goes on, but most importantly, you must understand that the Internet does not take away from the things that set your business apart. You simply have a new set of tools with which to promote those valuable benefits.

If you do not reach out to the people who are shopping online, you are missing an exceedingly important part of your market. If you are in this position, what you will clearly need to address is the fact that if you do not market your business in every possible way, including a well presented Internet presence, you will become even less visible over time. Time is not on your side as your competition is gaining market share and polishing their online presentation, just as they have been in the years while you neglected yours.

We welcome your questions or comments. Please contact us and let us know what you think.