Barriers of Internet Marketing
A study conducted by McKinsey Quarterly in July 2007 covered the views of over 410 marketing executives in sectors like retail, telecommunication, technology, business services and energy. The primary barriers to online marketing as noted by these executives were as follows:
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- 52% of participants felt that there are insufficient metrics to measure impacts of internet marketing
- 41% of participants felt that there is an insufficient in-house capability to promote marketing by the companies.
- 33% of participants felt that companies were reluctant to move to a new realm of marketing and they faced difficulty in convincing upper management.
This survey clearly indicates that there are a number of barriers to the actual establishment of a retail market online. (Latham 2008)
Other disadvantages and barriers to online marketing as indicated by Whiteley (2008) are as follows:
- The cost of hardware, website designing, maintenance and distributions costs online are quite high and all of these have to be factored into the cost of goods or service provided.
- The number of people who purchase online are very less when compared to those who browse.
- The internet is used mostly to gather information on the product and get reviews on product by other people. However very few people make purchase online.
· The most important drawback on internet marketing is ensuring that the website is secure. Many consumers are not satisfied with the available security online as a result they may be unwilling to use their credit cards for purchase.
