'Internet is one of the biggest marketing tools'

In an interview with Senior Associate Editor of rediff.com, Prof. Nirmalya Kumar(inset, bottom left ) , who is professor of marketing at London Business School, speaks his mind about internet and marketing.
Where does the Internet come in in today's world of marketing? How effective a tool is it? What future do you see for the Web as a marketing vehicle?

Internet is one of the biggest new marketing tools available. In fact, most companies are spending a lot less on Internet compared to what they should, based on how much time customers are spending on the Net.

Use of the Internet has matured over the years in the financial services and travel industries. Those two industries have done a very good job of integrating the Internet into their regular marketing budget.

The percentage of spend on Internet by most of the other companies, however, does not match the amount of time the consumers' eyeballs are on the Internet.

You mention in your book, Private Label Strategy: How to Meet the Store Brand Challenge, that retailers are focussing on their own brands rather than at those of the manufacturers. How were retailers able to outdo big brands, especially in veering customer attention towards themselves?

The private retailers managed to develop very good quality. In some cases, they can even exceed quality provided by the manufacturers. For, retailers know the customers better. They can provide more options to the consumers, can go for promotions, can spend on advertisers. Thus they are able to outdo big brands.
Read the full interview here.

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