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With E-Commerce providing a perfect launchpad, companies are taking no chances in trying their hand in this arena as well. The use of online marketing has led to the elimination of many intermediaries, who would have otherwise led to the rise in the price of the goods provided by the companies. Due to this elimination, companies now could directly interact with its customers and exchange ideas for innovation. A significant amount of cost is saved for the company and at the same time, by interacting with the consumers, companies get to know the kind of products required by them and are able to satisfy their needs in a much better way.

Here, I would like to mention about Michael Dell, the founder of Dell Computers. At the age of 19, when he started selling computers from his college room, little did anyone realize that this business idea would prove to be a boon to many companies. Proving all skeptics wrong, Dell went on to become one of the largest PC makers in the world and the largest in US. The idea was plain and simple, "Direct Marketing Model". Customized machines at an affordable price appealed everyone and sales shot up rapidly. This example gives a clear picture of the power of online marketing and the way Dell shot up to #1 position in the PC industry.

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