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Email Marketing is Cost Effective Marketing Tool for Online Businesses

Email marketing uses email as a medium to deliver marketing messages and to promote services and products of a company. Email marketing is one of the dynamic ways of advertising on Internet. Even though it is an old form of Internet marketing, it is still highly powerful and effective.

Author: Jameson Parker
Date: Jan 29, 2010 - 6:56:23 AM

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Email marketing uses email as a medium to deliver marketing messages and to promote services and products of a company. Email marketing is one of the dynamic ways of advertising on Internet. Even though it is an old form of Internet marketing, it is still highly powerful and effective. Email marketing is popular specifically because it is cost-effective, as mails can be sent freely and easily.

There are three types email marketing:
•    Direct email: This method of marketing involves directly sending promotional messages through emails to emails of customers which company has or taking list of email addresses from other businesses that provide email lists.
•    Retention email: It involves sending emails not only with promotional messages but also contains information, which informs, entertains, and provides benefits to the reader. These emails are designed to encourage readers to take action (to sign-up for something).
•    Advertising in other people's emails: It involves publishing of advertisement through others newsletter (regular mails) and paying them for doing so. There are many newsletters created to sell advertising space to others.

Advantages of Marketing through email:
•    Worldwide stretch: Email marketing can be extended globally, as millions of people use Internet to see their mails anywhere and anytime.
•    Reasonable cost: Email marketing involves less time, cost and resources compared to other marketing methods like direct mail or print advertising. Cost involved in sending and receiving emails after designing, executing and testing is 78% less than paper based direct mail version.
•    Interactive: Customer can easily understand about the product with the help of email even in the absence of seller (marketer) and it is also used to greet the customer, which helps in building special bond.
•    Computable results: There are many special tools available to accurately measure the parameters like click-through rate (how many times website is clicked), conversion rate and to know how the person entered the website. This will help to objectively evaluate the success of various email campaigns.
•    Opt-in and Opt-out options: Emails comprise of Opt-in and Opt-out options which helps marketer to shortlist people who are actually interested in (subscribed) their product.
•    Easy: Performing email campaign is very simple and it can be carried out from home also.
•    Quick response: Response to email is very easy and immediate compared to response through direct mail (post).

Risks involved in email marketing:
•    Delivery issues: As people are sensitive to mail spamming, there is a possibility for useful emails to be thrown into junk mail folder.
•    Breaking the law: There is possibility that companies collect the mail addresses illegally and send junk mails. Businesses have to strictly obey CAN-SPAM rules when sending for commercial purposes.

Email marketing plays major role in marketing as the combination of Internet and business enables the online businesses to have quick growth and brings good profit to them. Email marketing is helpful in delivering the clear idea with right proposal at the correct time, and when it is targeted right audience with effectively design.


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View all articles by Jameson Parker

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