There are several definitions given by several experts to explain internet marketing. Chaffey define internet marketing as 'the application of the internet and related digital technologies to achieve marketing objectives' (Chaffey et al. 2000:6). Another definition presented by Strauss who tried to give a more comprehensive definition and sync them with marketing definition version of The American Marketing Association in Kotler et al. (2006). Strauss defines internet marketing as 'the use of information technology in the process of creating, communicating, and delivering aspects value to costumers, and for managing customer relationships in ways that benefits the organization and its stakeholders' (Strauss et al. 2006:3).
Chaffey et al. (2000) explains the difference between internet marketing with conventional marketing. The flow of information in internet marketing is two-way (interactive) and involves many participants simultaneously, as happens in chat rooms, discussion forums or virtual community. In internet marketing consumers can more freely to dig as much information and interact to gain a more comprehensive feedback about a product or service offered. And the interactive nature of the Internet medium is also causing not only a manufacturer or seller who can distribute information about a product or service. Consumers, potential consumers and competitors also can do the same thing.
Bocij et al. (1999) in Chaffey et al. (2000) mentions at least six benefits can be obtained from the application of internet in marketing activities. Utilization of the Internet can reduce operational costs, increase capabilities and competitive company while increasing competency. In addition to the application of the Internet, firms will also be easier to exercise control over operations, facilitate communication and improve service quality to its customers.
Turban et al. (2006) add some points to other benefits, the business can run 24/7/365 without stopping, and the globalization of marketing outreach efforts can be done without increasing costs significantly. Turban also mentions that consumers also benefit from the internet marketing, because the information and transactions can be obtained and carried out only with one-click-away.
But further Turban also mentioned that not all products can be marketed in an optimal fashion through the medium of internet. There are only twelve product categories that can be sold either on the internet. The top five categories are computer-related products (hardware and software), electronic products, sporting goods, office equipment and books (e-book or physical). It is no coincidence that the market of the five categories of these products have the same domain with a segment of Internet users.
Afuah and Tucci (2003) mention seven business models that can be implemented by corporate organizations to gain revenue from the internet. Seven business models are commission-based, advertising-based, markup-based, production-based, referral-based, subcription-based, and fee-for-service-based.
