Importance of Internet Marketing
Despite the fact that there is a fast-growing tendency to integrate World Wide Wed to the marketing, the success and importance of the Internet for business is still identified by the nature and quality of products and customer’s demands (Chaffey, 2006, p. 33). So, if a company specializes in providing the services, it is much easier for it to use online communication for accepting the orders.
One of such companies is Easyjet for which the Internet is quite important because their operations mostly deal with selling and booking tickets (EasyJet.com, n.d.). However, there are organizations whose products cannot be efficiently sold via the Internet, such as BP, an energy company whose operations are more beneficial when applying to traditional methods of marketing.
One way or another, e-commerce offers a wide range of innovative strategies and tools for constructing a successful business infrastructure within the virtual worlds (Mohammed et al. 2003; Hanson and Kalyanam, 2006; Hanson, 2000).
Internet culture has, therefore, contributed to the construction of online communities such as Second Life that fostered the spread of Internet marketing. In this regard, it is necessary to define the main components of Second Life and how the virtual world influences marketing advancement.
Definitions of Second Life
Second Life, a brainchild of Linden Lab whose director Philip Rosedale presented another opportunity of the Internet Marketing in the virtual world. It has become the popular among online users and leading Internet companies because it opened new possibilities and marketing strategies (Mahar and Mahar, 2009, p. 4).
In this regard, the creation of this online product has turned the World Wide Wed into the virtual platform for shopping, information, and particularly for building alternative marketing businesses (Mahar and Mahar, 2009, p. 7).
Second Life is also considered to be a three-dimensional world grasping the basics of social structuring and comprehending various academic disciplines such Mathematics and Physics.
Such areas will be of great use in the sphere of e-commerce. Apart from being a mere entertainment for online users, Philip Rosedale, the creator of the virtual wolrd, has also introduced a bulk of consistent and efficient strategies that can be implemented to real Internet marketing.
Therefore, Second life is one of innovations that allow marketing to be fully absorbed with social networking where it is possible to engage people for developing marketing relationship in a more effective way. The principle of online trade and communication with the cyber-space can advance the marketing segment considerably (Mahar and Mahar, 2009, p. 125).
Tools and business strategies promoted by Second Life
Building relationships. The metaverse of Second Life has triggered the introduction of innovative approaches to building relationships within the cyber-space (Marketing Minefield, 2007). Hence, the major difference of virtual marketing lies in a greater interaction between businesses and their potential customers.
In this respect, the creators of Second Life virtual reality has implemented effective strategies for building business relationships that are primarily based on respect, trust, enjoyment, and open space for creativity.
These are the main pillars for comprehending and sharing the core components of fruitful cooperation that should be definitely implemented by other major corporations intending to massively integrate to the Internet marketing (Mahar and Mahar, 2007, p. 163).
Second Life has introduced advanced strategies for treating customers with regard to the problem of organizational ethics and cultural diversity (Mahar and Mahar, 2007, p. 165).
Hence, the marketing and business approaches worked for the Second Life online game can be successfully introduced to the system of business approaches of numerous companies. Indeed, the game allows people to equally participate in all marketing and business activities irrespective of age, race, gender, and disabilities.
There is an assumption that the provisions presented in virtual world have fostered the development of different legal issues and provisions impelling companies to create blogs and online information that would be accessible for people with various types of physical disabilities.
It is, therefore, alleged that Web Content Accessibility Guidelines were created for leading intranet and internet companies to follow the standard and tools of handling e-commerce (Candwell et al., 2008).
In this respect, Red Bull Company has also introduced various services and good to Second Life community for the purpose of encouraging consumers affiliating to various cultural communities as well as related companies to cooperate (Penquine, 2007).
Building alternative cultural environment. It should be admitted that online community of Second Life has presented a fertile ground for building an alternative cultural space for consumers.
In particular, in order to attract the online visitors, which are also considered to be the potential consumers, Coca Cola Company, one of the leading international corporations, launched a contest for virtual visitors to participate in constructing and designing a Coke machine. Such a campaign has created incredible viral and branding opportunities that can be applied as viable marketing strategies (Nicole, 2007a).
The same approached was implemented by Cruxe, a digital company that treats marketing as a viable marketplace (Nicole, 2007b). By releasing its innovation, Virtual World Widget, the company has implementing their own approaching to building favorable relationships with other consumers and shifting to an advanced variant of marketing economy (Nicole, 2007b).
Advertizing products and services via Second Life. Due to the fact that the number of registered user of Second Life has increased up to 7 millions, the virtual world has ceased to be considered as a cyber game with virtual products and services. Rather, it has become an advertising platform.
This is predetermined by the popularity of this online game and by the presence of effective marketing and business tools used within this framework (Marketing Minefield, 2007). In this regard, Second life has become a valid marketing tool for many companies, such as American Apparel that decided to create a virtual shop of clothing within the online community (Lavalle, 2006).
On the one hand, this marketing strategy introduced by the closing company has exploded the bulk of online designed and encouraged other companies, like Adidas to sell virtual items online. On the other hand, the spread of online advertising in the sphere of fashion have caused numerous problems. Devoted engagement in online fashion can diminish the popularity of offline brands (Lavalle, 2006).
Hype and the branding marketing within the online community have provided a mixed attitude of online visitors (Marketing Minefield, 2007). One way or another, using Second Life as a viable advertising tool has fostered the creation of brand equity. In other words, the virtual world has managed to provide equal opportunities of major corporations in competing for top position on peer-to-peer basis.
Despite the above contradictions, US business-to consumer Internet companies still have equal competitive advantages within the online community. Therefore, the number of visitors is identified by the ratio of market segment in the market (Ashwin et al., 2000). What is more the expansion of internet marketing has contributed to growth of online shopping.
Thus, according to IMRG e-retail sales indices (n.d), internet accessories and closing sales have increased up to 32 % averagely. Such augmentation is primarily predetermined by the fact that major e-retail companies can greatly benefit from using innovative shopping patterns.
Pursuant to IMRG research (n.d.), about 56 % of virtual consumers have recognized that e-shopping is more friendly and available as compared with the real world shopping.
In addition to the above-presented statistics, it is imperative to lay out the figures and facts proving the benefits of using social networks for building business relations and for integrating to marketing (Interactive Advertising Bureau, 2008b). Hence, e-advertising revenues in the United States counted about $ billion, which sets an 11 % increase as compared with 2009 (Interactive Advertising Bureau, 2008b).
The hype includes rich media, blog posts, banner ads, and sponsorships. The leading corporations are doing their best in reconstructing the marketing strategies to meet the needs of exigent consumer who are often attracted by online forms of entertainment in the age of digital expansion (Interactive Advertising Bureau, 2008b).
Cloud computing and Second Life. It has been recognized that the introduction of cloud computing can considerably assist businesses in meeting customer’s demands and facing the challenges provided by the shifts in technological development (PcW, 2010).
What is more important is that cloud computing allowed such giant IT businesses as IBM, Google, Microsoft, and Wipro Technology to firmly establish their positions in the fast-growing cloud computing market (Dean and Saleh, 2009, p. 2).
To be more precise, cloud computing allows to utilize new applications and alternative platforms within the cyber space. It also provides companies with greater flexibility in meeting the consumers’ demands and, finally, cloud computing offer excellent opportunities for meeting the challenges of future (Dean and Saleh, 2009, p. 3).
Due to the fact that cloud computing is a relatively new phenomenon, it is possible to assume that Second Life and other social networks the triggered the development of this online system.
Such expansion concerns not only companies dealing with production of digital technologies and software, but the one that want to rapidly integrate to the international market. For instance, Proctor & Gamble attempts to turn social network into a means for advertising their products.
Carrying out its commercial operations in accordance with Second Life’ marketing strategies, the company uses Facebook as a platform for e-shopping (Shayon, 2010). It also applies to such media devices as videos and blog post in order to introduce their new product Pamper Dry Max. Moreover, Proctor & Gamble created an interactive online group with the brand image name (Shayon, 2010).
Judging from the above Second Life strategies constituting a more specific level of cloud computing provides models, resources, and approaches for creating a more upgraded business system within the Internet market segment (Dean and Saleh, 2009, p. 5).
The Principles of Viral Marketing in the Metaverse of Second Life
Nowadays, the World Wide Web has become a solid platform for building online marketing communication, particularly internal communication, and supply chain management. In particular, the introduction of Internet Protocol has become the amplifier of the process of company’s optimization, global outsourcing, and customer relationship management.
What is more important is that the integration of marketing sphere has deposited to the growth of US economy. Hence, according to 2009 Annual Report provided by the Interactive Advertising Bureau (2008a), it has been proved the ability of media, particularly the World Wide Wed to deliver powerful communication approaches to the relevant audience in a right time, a right place.
In addition, virtual world can better meet customer’s need and contribute to the value of company’s products and services (Interactive Advertising Bureau, 2008a). Finally, the operational effectiveness can be considerably improved by reducing confrontation between media corporations and advertising consumers (Interactive Advertising Bureau, 2008a).
Since the metaverse of Second Life has become popular among the visitors, it has become a favorable ground for introducing the viral marketing approach. Indeed, Second Life has become a platform for different kinds of marketing and business campaigns.
The virtual world itself can be considered as a breakthrough in advertising and creating the products (Interactive Advertising Bureau, 2008b). As an example, Craying that works in cooperation with Coca Cola plan to expand its brand awareness within the cyber space of Second Life.
Like its partner, the company also strives to capture the consumer’s demand through advertising their products (software and online service) by means of social networks (Lewis, 2010). Aside from interacting with their potential customers, the company has also a great opportunity for establishing firm position with the held of an integrated marketing strategy.
Second Life and related virtual word has also to development of mobile platform for predicting consumers’ behavior and demands and moving forward to presenting media tactic for e-marketers.
In order to simplify the businesses’ expansion to the World Wide Web and to establishing direct consumer relations, the invention of 360i’s Mobile Marketing Playbook show how mobile technologies can be used for enhancing the digital marketing landscape (Interactive Advertising Bureau, 2008c).
Aside from digital technologies, Second life has also introduced viral business cards to make online shopping more available for the consumers. This implemented strategy is quite beneficial because it provides a wider range of opportunities for participating in businesses (Modern Communications, 2010).
In general social networking marketing provides an alternative distributing of functions and operations. In particular, it is traditionally divided into private and custom virtual worlds, sponsorships, and second life – the largest interactive business network (Modern Communications, 2010).
Conclusion
In conclusion, it should be stressed that online technologies has greatly influence the marketing sector. Moreover, the construction of online communities such as Second Life has had a great influence on the development of effective marketing strategies.
Therefore, Second Life activities based on solid business tools and theoretical approaches have become the core tool in constructing online marketing devices and in creating a competitive advantage of major corporations, such Coca Cola, Red Bull, eBay, Amazon, etc.
First of all the virtual world has introduced powerful method for building business relationships that are based on trust and respect to all people irrespective of gender, race, and disabilities. Second, the online community created by Linden Lab has set alternative cultural environment.
Third, Second Life strategies have triggered the invention of mobile and media platform by the companies that plan to attract a wider target audience. Therefore, virtual worlds and social networking have greatly advanced the sphere of marketing management, particularly to the metaverse of Internet marketing.
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