Internet Marketing is the marketing of products or services over the Internet. It also referred to as online marketing or e-Marketing. The interactive nature of Internet marketing, both in terms of instant response and in eliciting response, are unique qualities of the medium. Internet marketing is the process of growing and promoting an organization using online media. Internet marketing does not simply mean building a website or promoting a website. Somewhere behind that website is a real organization with real goals.
Internet marketing methods include search engine marketing, display advertising, E-Mail marketing, affiliate marketing, interactive advertising, and also Social Media Marketing Methods such as blog marketing, and viral marketing.
Internet marketing ties together creative and technical aspects of the internet, including design, development, advertising and sales. Internet marketing strategy includes all aspects of online advertising that promotes a company online, as appropriate for the promotion of ones' business.
Internet marketing refers to the placement of media along different stages of the customer engagement cycle, through Search Engine Marketing, Search Engine Optimization, E-Mail Marketing and Web 2.0 strategies.

Advantages
Internet marketing is relatively inexpensive. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and purchase products and services at their own convenience.
Characteristics of Internet marketing:
One To One vs One To Many Approach: The targeted user is typically browsing the Internet on their own and the marketing messages reach them personally.
Demographics Targeting VS Behavioral Targeting Approach: Off Line marketers typically segment their markets according to age group, sex, geography and other general factors. Online marketers have the luxury of targeting by activity.
Measurability Approach: Almost all aspects of an online campaign can be traced, measured and tested. The advertisers either pay per impression or pay per click accomplished. Therefore, it is easy to understand which messages or offering are more appealing to the audience.
Response And Immediate Results Approach: Since the online marketing initiatives usually require users to click on the message, go to a website and perform a targeted action, the results of campaigns are immediately measured and tracked.

Limitations

Internet marketing requires customers to use newer technologies than traditional media, not all people may get the message. Low speed Internet connections are one barrier. If companies build overly large or complicated web pages, some Internet users struggle to download the information on dial up connections or mobile devices.
From the buyer's perspective, another limitation is the inability of shoppers to touch, smell, and taste or try on tangible goods before making an online purchase.

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