Traditional Market

Compare and Contrast Traditional Markets with Digital Markets

Introduction

The traditional markets are the market that buying, selling of goods and services, servicing customers that trades face to face. The digital market is using the electronic devices such as computer via internet to do the marketing.

Content

Advantages

Advertising via online is the most popular method to advertise. It attempt to attract surfers to an advertiser’s side. Once at the advertiser’s site, consumers can receive information, interact with the seller, and in many cases, are easily given a chance to place an order. Web advertising can be interactive, is easily updated, can reach millions at a reasonable cost, and offers dynamic presentation and rich multimedia.

Disadvantages

In traditional market, there is hard to promote and advertise the business to public.

In

Conclusion

Some thoughts on differences in producer and consumer behaviour and the welfare benefits of engagement in the digital economy: Traditional vs. Digital Markets.

In traditional markets there is a trade-off between the reach, richness and flexibility of communication. For example if you want to transmit a message to a large number of people in short period of time then advertising on television or radio may have been an appropriate policy, however the trade off of high reach is low richness. You don’t get very much detail from a minute advert on television or radio, usually I find that it just gets you thinking about the product, at most, there isn’t time to engage with the product on any significant level. At the other end of the spectrum is one on one communication between the sales assistant on the shop floor and the consumer, but here again there is a trade off between richness and reach i.e. high richness but low reach.

However, the digital economy provides us with a platform for rich, unique and flexible communication with a very high reach potential, simultaneously. The challenge is for...