Traditional Marketing vs. Internet Marketing

EFO703: Bachelor Thesis in Business Administration 300 Basic Level M?lardalen University Supervisor: Leif Sanner

Traditional Marketing vs. Internet Marketing

A comparison

2008-06-05

Group 1931: Alfa Shima 820103 Mona Varfan 820721

Abstract

Date: Level: Authors:

2008-06-05 Bachelor Thesis in Business Administration, 15 ECTS credits

Alfa Shima (820103-8588) Pettersbergsgatn 24,8tr 72463 V?ster?s 076 2740308

Mona Varfan (820721-7004) Sor?gatan 29, 2tr 16447 Kista 073 7336006

Supervisor: Leif Sanner

Title:

Traditional marketing vs. Internet marketing: A comparison

Problem:

Marketing is an important strategy for businesses and it contains numerous effective tools. Traditional marketing has been in use for many years and nowadays Internet has brought new ways of doing business for companies and that has affected marketing. What are the main differences between Internet marketing and traditional marketing? Which one of the two approaches contains the most used and effective marketing tools according to chosen companies in this thesis?

Purpose:

The aim of this study is to compare traditional marketing and Internet marketing and show the differences of characteristics between them. And to find out what marketing tools are effective for some chosen companies in the fashion industry.

Method:

The information gathered in this study was obtained through qualitative research from textbooks, websites, articles and interviews. Some quantitative data such as statistics were also gathered. The authors conducted interviews with few companies operating in the fashion industry to collect information needed for the analysis in this study.

Conclusion: By analysing different aspects of theory, comparison and interview answers, the authors came to a conclusion. Using the advantages of both Internet marketing and traditional marketing according to the goals of the company, is considered to be the most effective way of marketing. Comparing the two approaches, Internet seemed to be a complementary tool to traditional marketing.

Acknowledgement

We are grateful to our tutor for the helpful advice and guidance that he has given us. The feedbacks that we have received in the seminars have helped us towards the right direction.

We are also thankful to those managers at Heart of Brands, Tiger of Sweden, H&M, VeroModa, Polarn & Pyret, who took time to give us interviews.

We are thankful to our friends and families for their understanding and support during this process.

Table of contents :

1 INTRODUCTION.............................................................................................................. 1 1.1 Research problem ........................................................................................................ 1 1.2 Study aim ..................................................................................................................... 2 1.3 Target group ................................................................................................................ 2 1.4 Delimitations ............................................................................................................... 3 1.5 Structure of thesis ........................................................................................................ 3

2 METHODOLOGY ............................................................................................................. 4 2.1 Selection of research problem ..................................................................................... 4 2.2 Selection of research method....................................................................................... 5 2.3 Qualitative research ..................................................................................................... 5 2.4 Performance of study................................................................................................... 5 2.5 Validity & Reliability .................................................................................................. 7 2.6 Methodology critique .................................................................................................. 7

3 LITERATURE REVIEW................................................................................................... 8 3.1 Traditional marketing .................................................................................................. 8 3.1.1 Product ................................................................................................................. 9 3.1.2 Price...................................................................................................................... 9 3.1.3 Place ................................................................................................................... 10 3.1.4 Promotion ........................................................................................................... 10 3.2 Internet Marketing ..................................................................................................... 13 3.2.1 Product ............................................................................................................... 14 3.2.2 Price.................................................................................................................... 14 3.2.3 Place ................................................................................................................... 15 3.2.4 Promotion ........................................................................................................... 15 3.3 Traditional Marketing VS Internet Marketing........................................................... 16 3.3.1 Product ............................................................................................................... 16 3.3.2 Price.................................................................................................................... 17 3.3.3 Place ................................................................................................................... 18 3.3.4 Promotion ........................................................................................................... 18 3.3.5 Comparison model ............................................................................................. 20

4 EMPIRICAL DATA ........................................................................................................ 22 4.1 Vero Moda ................................................................................................................. 22 4.1.1 Company background ........................................................................................ 22 4.1.2 Interview answers............................................................................................... 22 4.2 Heart of Brands.......................................................................................................... 23 4.2.1 Company background ........................................................................................ 23 4.2.2 Interview answers............................................................................................... 23 4.3 Tiger of Sweden......................................................................................................... 24 4.3.1 Company background ........................................................................................ 24 4.3.2 Interview answers............................................................................................... 24 4.4 Polarn & Pyret ........................................................................................................... 25 4.4.1 Company background ........................................................................................ 25 4.4.2 Interview answers............................................................................................... 25 4.5 H & M........................................................................................................................ 25 4.5.1 Company background ........................................................................................ 26 4.5.2 Interview answers............................................................................................... 26

5 STATISTICAL DATA .................................................................................................... 26 6 ANALYSIS ...................................................................................................................... 27

6.1 Analysis of empirical data relative theory ................................................................. 27 6.1.1 Internet marketing .............................................................................................. 28 6.1.2 Traditional marketing ......................................................................................... 29 6.1.3 Reflection on the comparison model.................................................................. 32

6.2 Discussion.................................................................................................................. 33 7 CONCLUSION ................................................................................................................ 35

7.1 Suggestions for further research ................................................................................ 36 REFERENCES ......................................................................................................................... 37 APPENDIX .............................................................................................................................. 39

Appendix A .......................................................................................................................... 39 Appendix B .......................................................................................................................... 39

List of figures:

Figur 1 Research plan................................................................................................................ 4 Figur 2 Promotion mix model ................................................................................................. 11 Figur 3 The Comparison Model ............................................................................................... 21

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