Sales taxes bring in big revenue for states, but they have to act carefully. If one state charges more sales tax than its neighbors, people start to cross state lines to buy big-ticket items. If the economy takes a dive and people buy less, states feel the crunch too. And more recently, buyers have started deliberately avoiding state sales taxes by buying on the internet.
Any definition of internet marketing needs to come along with a definition of things associated with it such as affiliate marketing, network marketing, multi-level marketing and so on and so forth. Some of these are less legitimate than others. For example, affiliate marketing is a tough nut to crack unless you have a massive following or you understand how to build excellent squeeze pages and effective sales funnels.
Affiliate marketing - Affiliate marketing is perceived to not be considered a safe, reliable and easy means of marketing through online platform. This is due to a lack of reliability in terms of affiliates that can produce the demanded number of new customers. As a result of this risk and bad affiliates it leaves the brand prone to exploitation in terms of claiming commission that isn’t honestly acquired. Legal means may offer some protection against this, yet there are limitations in recovering any losses or investment. Despite this, affiliate marketing allows the brand to market towards smaller publishers, and websites with smaller traffic. Brands that choose to use this marketing often should beware of such risks involved and look to associate with affiliates in which rules are laid down between the parties involved to assure and minimize the risk involved.
Game advertising - In-Game advertising is defined as "inclusion of products or brands within a digital game." The game allows brands or products to place ads within their game, either in a subtle manner or in the form of an advertisement banner. There are many factors that exist in whether brands are successful in their advertising of their brand/product, these being: Type of game, technical platform, 3-D and 4-D technology, game genre, congruity of brand and game, prominence of advertising within the game. Individual factors consist of attitudes towards placement advertisements, game involvement, product involvement, flow or entertainment. The attitude towards the advertising also takes into account not only the message shown but also the attitude towards the game. Dependent of how enjoyable the game is will determine how the brand is perceived, meaning if the game isn’t very enjoyable the consumer may subconsciously have a negative attitude towards the brand/product being advertised. In terms of Integrated Marketing Communication "integration of advertising in digital games into the general advertising, communication, and marketing strategy of the firm" is an important as it results in a more clarity about the brand/product and creates a larger overall effect.
Email marketing is the practice of nurturing leads and driving sales through email communications with your customers. Like social media, the goal is to remind users that you’re here and your product is waiting. Unlike social media, however, you can be a lot more aggressive with your sales techniques, as people expect that email marketing will contain offers, product announcements and calls to action.
However, that has not necessarily been the case for affiliate sellers on Amazon. Because these sellers didn’t have a physical presence in many, or in some cases any, areas where their products were sold, they often did not charge sales tax. But now that they are required to, it may not be that easy for those sellers to just flick a switch and become compliant.
Understanding Mobiles: Understanding mobile devices is a significant aspect of digital marketing because smartphones and tablets are now responsible for 64% of the time US consumers are online (Whiteside, 2016). Apps provide a big opportunity as well as challenge for the marketers because firstly the app needs to be downloaded and secondly the person needs to actually use it. This may be difficult as ‘half the time spent on smartphone apps occurs on the individuals single most used app, and almost 85% of their time on the top four rated apps’ (Whiteside, 2016). Mobile advertising can assist in achieving a variety of commercial objectives and it is effective due to taking over the entire screen, and voice or status is likely to be considered highly; although the message must not be seen or thought of as intrusive (Whiteside, 2016). Disadvantages of digital media used on mobile devices also include limited creative capabilities, and reach. Although there are many positive aspects including the users entitlement to select product information, digital media creating a flexible message platform and there is potential for direct selling (Belch & Belch, 2012).
The current default rule throughout the United States is that you must collect sales tax on Internet sales to customers in those states where your business has a physical presence. The physical presence rule is based on a 1992 United States Supreme Court decision, Quill Corp. v. North Dakota, that addressed the obligations of mail order businesses to collect sales tax on out-of-state sales. The decision has been extended to include online retailers. Generally speaking, a physical presence means having:
One simplification is already in existence. It has been suggested by a previous Marketplace Fairness Act to expand an existing organization to help keep the process of collecting internet sales taxes fair. This non-profit organization, called Streamlined Sales Tax (SST)was created in 1999 as a way to i "simplify and modernize sales tax administration." At present, 44 states have agreed to participate, with centralized administration and reciprocity agreements, standardized tax rates, and uniform tax bases.
A strategy that is linked into the effectiveness of digital marketing is content marketing. Content marketing can be briefly described as "delivering the content that your audience is seeking in the places that they are searching for it". It is found that content marketing is highly present in digital marketing and becomes highly successful when content marketing is involved. This is due to content marketing making your brand more relevant to the target consumers, as well as more visible to the target consumer.
Web design is a very technical field that requires high literacy in many different kinds of software, including image editing and website architecture programs. A designer should be comfortable with computer “languages” like HTML and stay up to date on new technological developments. The designer is also an artist, so he or she should also have a firm grasp on aesthetics, visual continuity, and image composition.
At the federal level Congress has repeatedly considered legislation that would affect large Internet retailers and how online sales taxes are collected in all states. The most recent form of a proposed federal law is the Marketplace Fairness Act of 2015. As in previous versions, the 2015 Act would allow states to require sellers not physically located in their state to collect taxes on online and catalog sales made to people in their state. Sellers that make $1 million or less in annual sales and have no physical presence in the state would be exempt from this requirement. States would have to meet certain criteria to simplify their sales tax laws and make sales tax collection easier before they could require sellers to collect the tax.
By using Internet platforms, businesses can create competitive advantage through various means. To reach the maximum potential of digital marketing, firms use social media as its main tool to create a channel of information. Through this a business can create a system in which they are able to pinpoint behavioral patterns of clients and feedback on their needs. This means of content has shown to have a larger impingement on those who have a long-standing relationship with the firm and with consumers who are relatively active social media users. Relative to this, creating a social media page will further increase relation quality between new consumers and existing consumers as well as consistent brand reinforcement therefore improving brand awareness resulting in a possible rise for consumers up the Brand Awareness Pyramid. Although there may be inconstancy with product images; maintaining a successful social media presence requires a business to be consistent in interactions through creating a two way feed of information; firms consider their content based on the feedback received through this channel, this is a result of the environment being dynamic due to the global nature of the internet. Effective use of digital marketing can result in relatively lowered costs in relation to traditional means of marketing; Lowered external service costs, advertising costs, promotion costs, processing costs, interface design costs and control costs.
E-commerce may take place on retailers' Web sites or mobile apps, or those of e-commerce marketplaces such as on Amazon, or Tmall from AliBaba. Those channels may also be supported by conversational commerce, e.g. live chat or chatbots on Web sites. Conversational commerce may also be standalone such as live chat or chatbots on messaging apps and via voice assistants.
Pay per click (PPC) advertising, commonly referred to as Search Engine Marketing, delivers targeted traffic and conversions and will yield results faster than organic search engine optimization. Successful PPC marketing programs offer incredible revenue and brand-building opportunities. However, without a thorough understanding of how PPC works, it is very easy to mismanage valuable advertising budgets. That’s where we come in!