Due to changes which are occurring in the information technology sector, the way businesses are being carried out and also the development of the Internet. I have set out in this dissertation to identify the perception of customers regarding Internet as a promotional medium. Primarily, I set out to give an overview of marketing issues related to promotion, issues including the customer's perception, buying influences and the decision process, placing a highlight on the marketing mix influences particularly on promotion. I proceeded by giving an outline of the e- commerce and e-business, identifying the different categories within e-commerce, the steps involved in developing e-business within an organisation. The study identified a number of findings related to the perception of customers regarding the Internet as a promotional medium. Some of the most relative findings indicate that customers still perceived the traditional method of advertising as the best type. A positive feedback has been received regarding the Internet as a marketing tool but there seems to be a lack of trust, which has to be dealt with by companies to make customers overcome this obstacle. Finally customers feel that the human interaction is an important element which has to be made present on website.Companies have to do their best to make utmost use of latest technologies and developments, such as the Internet, so as to maximise organisations goals. To do this the whole organisation has to be committed and the implementation has to be a comprehensive one. Furthermore companies have to ensure that such a development should be used not only to communicate to the customers, but with the customers, benefiting from their feedback.