Traditional Markets V.S Digital Markets free essay sample

Traditional markets is refers to considering Product, Price, Promotion and Placement before launching a product or offering a service. It is a product-based and company-focused approach to increase branding. Traditional markets also can be referred to as markets or marketplaces, is a relative to the supermarket stores, usually in a community will have at least one, the sale of goods it is mainly a variety of fresh vegetables, not yet slaughtered chicken, fish, etc. , in addition, may also have restaurants, grocery stores, clothing stores and other shops located in which these. Chinese New Year (Lunar New Year Fair) will sell part of the traditional market; will become a night market in the evening. In a addition, traditional markets selling fresh ingredients, and people bargain or requirements gifts, so widely loved by housewives, housewives usually during the day cooking ingredients needed to buy the next day or two. Due to the emergence of supermarkets, traditional markets flourished over the past, but the customer shopping habits (mainly influenced by age), traditional markets still occupy a certain position. In addition, the traditional markets in Europe and North America are not common. The traditional markets of the environment in general is closed, there are the traditional open-air market. Traditional markets in the environment do not feel very comfortable, dirty ground and many water stains. In addition, the market crowds, it takes more time to select goods and bargain with each other as people, the noisy sound of the traditional market is very large. ii. Digital Markets Digital market today is playing a significant role in the world’s economy particularly in the way of conducting business. Digital markets have a basic function of assisting the buyer and seller conducting transaction through the exchange of products, information and payment. Moreover, the application of internet in commerce is predicted may reform the communication in the market place and lead to the perfect market, which has many sellers, buyers and substitutable goods and services as well as symmetric information. Digital markets can involves promoting a product or service through the internet, mobile applications or email campaigns. In regard to internet marketing, these strategies could include videos, blogs, social networks, banners, online classified PPC ads, online business listings, affiliate programs, eBooks articles, RSS, internet radio shows, and other options. For years, digital market has raised many issues, for instance whether digital market increases the level of competition in the market or whether digital market affects the price. It was argue that the internet will reduce the search cost for consumer and increase competition among sellers that will lead to higher level of welfare and lower price of commodity. It is clearer that internet-based marketplaces will support better economic efficiency and maintain economic growth. The digital market may also change the way of the business implementing the marketing strategy and managing its relationship with costumers. In the addition, state that the internet can be used as an alternative medium by business to perform product branding and conduct transaction and maintain the relationship with public. This may bring positive effects on lower cost of communication and transaction, improved communication with customers and vendors in the terms of speed and quality, as well as broader market scope. Traditional Markets Traditional market is a business that selling products or services through the shop, not using any latest technology to promote their products or services. Traditional market is simple, in exchanging the goods and service with money or goods and service in physically, two parties will be meeting or connect physically, the main fact is that two parties interact about the deals physically. Traditional markets are providing a sense of place and being part of the nations cultural tradition. It was offering local access to fresh produce and other commodities. It also reduces environmental impacts. For example, it was eliminating excessive packaging or waste. Traditional markets are remaining an important element of the economy, particularly in relation to independent retailing, local employment and business start-up opportunities. In the addition, it’s not just about making a profit, but it is helping economic growth, it is helping the local economy. And it is adding to that culture a sense of place and the cohesion aspect as well, as well as spin-offs to education and what-have you. It does tick a lot of boxes in terms of corporate priorities. When is Traditional Markets used A company focused approach to increase branding. Only focus on products quality and company to increase their reputation. Traditional market, a product moves from a company to the customer through many different sources such as wholesalers, retailers, shoppers, advertising and so on. It’s about 60 percent to 70 percent money of MRP (maximum retail price) goes into the middlemen’s pockets and these middlemen are rich. Why is Traditional Markets used Traditional markets are remaining an important element of the economy, particularly in relation to independent retailing, local employment and business start-up opportunities. In the addition, it’s not just about making a profit, but it is helping economic growth, it is helping the local economy. It also can offer local access to fresh produce and other commodities. How is Traditional Markets used In the agriculture business these middlemen always exploit the farmers to get the cheaper price of products and then sell it in higher price, that is why all consumers always buy higher price products. Digital Markets Digital market is a business that selling products or offering services through internet, mobile application or email campaigns these types of technology terms. During the world shifts gear and operates in a faster pace, everything talks about effectively if not your business will be defeat by your competitors. A lot of company doing digital market on their business now, it is more useful and effective when they promoting their products to the market, it is not only just in the local market and also the global market, therefore they can earn more and more profits, increase their branding quickly and company reputations. And it start blooming when the information technology become more advanced and secure. It makes people easier, save time and money. Digital market is based on the electronic markets like websites, virtual markets and auctions. But it still has a disadvantages like fraud, unseen, spam which can be effect to the trust of buyers and sellers. Participants needs to have a general knowledge of computer to use well and avoid any incidents, are basically posted about goods and services with picture or sounds followed by price and it is seem similar to put goods into a shelf in the market. Purchaser will made a payment using online transaction or notes. When is Digital Markets used When your name repeatedly appears in search results, your brand image is automatically reinforced, regardless of whether users actually visit your site. And it can be more people who hear about your companies, this better for the company future business. Why is Digital Markets used Digital markets can reduce the search cost for consumer and increase competition among sellers that will lead to higher level of welfare and lower price of commodity. And it can make people easier, save time and money. How is Digital Markets used Digital Markets can involve promoting a product or service through the internet, mobile applications or email campaigns. It can be time saving and cost effective. Digital advertisements are made with mobile devices, SMS, instant messages, websites, and digital notices all in mind. Internet marketing and direct market are the techniques which are involved in Digital Market. Content: Traditional Markets V. S Digital Markets Advantages and Disadvantages i. Advantages of Traditional Markets a. Faster Results Traditional markets can produce much faster and more effective results with well-place ads that are suitable to a particular audience. It can expect a stronger impact in lesser time with traditional markets. b. Durability The truth is many websites are deleted, moved, or abandoned all the time and search engine results also change periodically. Advertising offline has no uncertainties in that nature in any way. For instance, you can give someone your business card and that same reference can be good 10 or 20 years later. The same bears true for flyers and posters although handouts have a slightly lower life expectancy than business cards. The point is that a business is more durable offline than it is online. c. Trust Trust is a huge factor of any business, regardless of how it is promoted. Many people are more comfortable with buying products from offline ads than on the internet. The reason is that you get to see the people or company you are interested in buying from and get to know them a little before you actually purchase. More times than not, many online ads and websites dont provide that same trust aspect. The lingering of endless scam sites over the internet just makes that problem even worse. So most certainly, trust is more established in traditional markets than on the internet. ii. Disadvantages of Traditional Markets a. Cost Expenses You must pay for advertisement in print media or live broadcasting, such as TV and radio advertising, is not cheap at all. The bigger the geographical area you want to embrace and the more popular the company you advertise with, the more money you will be spending. b. Availability – Time constraint is probably the biggest traditional markets disadvantage. Online websites function 24/7 while many offline businesses usually operate in between 6-12 hours a day and only 5 days a week. Besides having less time to market an offline business, you are also presented with the problem of customers being able to contact you when they want. Most offline businesses dont provide email which means that customers have to wait to the next business day that you are open or have to leave a voicemail on your phone and wait until you contact them back. To many people, this can be very annoying. c. Personnel Most offline businesses require some kind of work force to maintain them while the internet provides enough tools and support for individuals to usually preserve their business on their own online. Not to mention the added stress and responsibility of having to keep an eye on your workers attendance and overall performance. The wider the demographic area you are trying to cover, the more of a need there is to have personnel. This means that more money comes out of your business revenue and into the pockets of your employees. iii. Advantages of Digital Markets a. Internet Markets is More Measureable marketers today are smarter and more sophisticated. They see the value of measuring results and brand awareness is more difficult to measure then real visitors to your website and real conversions. Marketers want to make sure every penny is spent wisely. Internet markets allow you to see exactly what you are paying for. b. Internet Markets Makes Strategic Decisions Based on Facts – Internet marketing can make decisions based on detailed analytics. You can have the smartest and most talented traditional agency with great ideas and plenty of experience, but they will have a difficult time showing real data that leads to achieving your goals. c. Internet Markets is a Constant Source – When you hear or see a television or radio ad it is there one minute and then it is gone. If you catch an ad in passing and you missed some information you cannot go back and review it. iv. Disadvantages of Digital Markets a. Cost online marketing is not free. The cost of software, hardware, wed site design, maintenance of your site, online distribution costs and of course, time, all must be factored into the cost of providing your service or product. b. Interaction the internet is still regarded as a source of information gathering for the majority of your customers. Of the number of visitors to your site, the vast majority of visitors who are motivated to buy will do so in person. c. Security There are many incorrect stereo types about the security of the internet out there. As a result, many of your visitors will not want to use their credit card to make a purchase. The fear of having their credit card info stolen is a clear and present danger in the minds of your visitors. CONCLUSION In the conclusion, Traditional and Digital Markets both have their advantages and disadvantages. In the digital world we live in today, it is almost impossible for traditional marketing to not include some form of digital. With busy work schedules, more people rely on the Internet to buy, to help them avoid the trip to the store to save time, but also conducive to the shackles of their homes has made a good deal. Internet marketing, with its many advantages, will change the world of business in the future. Traditional Markets, this type of market is still less use around the world. When we see our national scene in Malaysia, I think the traditional markets are still important; we can make a lot of profit. Without traditional markets, we cannot offer local access to fresh produce and other commodities. And our culture will gradually be human to forget. Although there are many benefits of digital markets, but is still the traditional markets people are choosing. Because it is able to experience the culture of our ancestors handed down, it cannot be replaced.