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Internet Marketing

• Profile of Internet users.• Marketing functions on the

Internet.• E-commerce.• Internet design issues.

14Chapter Overview

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Internet Purchases• What was the last purchase you made

using the Internet?• What percentage of your purchases

are made via the Internet?• What products do you purchase over

the Internet?• What do you think is the future for

Internet dot.com firms?• What obstacles do dot.com firms face?

Discussion Slide

Fogdog: Http://www.fogdog.com

14

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Some Internet Facts

• 41% of Americans have access to the Internet.• Over 4 million Web sites.• 200 million e-mail addresses.• 7 trillion e-mails are sent each year.• Nearly 50% of U.S. population communicates via e-

mail.• The average e-mailer receives 31 e-mails a day.• 25% of all B-to-B purchases are placed via the

Internet.• B-to-B e-commerce in the U.S. totals $1.3 trillion.• 21% of Internet users are preteens and teens, 35%

are college age and 35% are of Generation X.

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INTEGRATED LEARNING EXPERIENCESTOP

Internet Usage Statistics

• Access CyberAtlas to see the latest statistics about Internet usage. Access each of the following areas.• Stats Toolbox• Demographics• Geographics• Traffic patterns

• Http://cyberatlas.internet.com/big_picture

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• Building databases for e-mail campaigns.• Designing e-mail campaigns linking customers to

Web site information.• Creating fun and innovative games to attract and

keep customers coming back to a Web page.• Creating incentive programs.• Translating printed documents, catalogs, brochures

and newsletters for the Internet.• Adding graphics to the Web site.

Source: Ellisor, “Business-to-Business Offer WWW Opportunities,” Houston BusinessJournal, (September 17, 1999), Vol. 30, No. 7, p. 18B.

F I G U R E 1 4 . 2

Internet Services Offered by Marketing Companies

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• Advertising• Sales support• Customer service• Public relations• E-commerce (Retail store)

F I G U R E 1 4. 3

Marketing Functions on the Internet

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Compuserve

Http://www.compuserve.com

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Http://www.luckysurf.com

Many Internet lottery and gaming sites offer users a chance to win money without outright risk.

How do these business make money?

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E-CommerceOnline Sales

• Travel reservations $2,551• Computer hardware/peripherals $1,216• Apparel $1,144• Auctions $ 937• Toys $ 839• Consumer Electronics $ 810• Books $ 774• Financial services $ 539• Music $ 443

Average online sales per month (in millions of dollars).

Source: “Holiday Spending Numbers Come in Below Projections” (Http://cyberatlas.internet.com)

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E-Commerce Components

• Catalog• Shopping cart• Payment

procedure

http://www.bluefly.com

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E-Commerce Incentives

• Must overcome security issues.• Must change purchase behavior habits.

• Financial incentive• Cyberbait

• Convenience-based incentive• Value-added incentive

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Business-to-Business E-Commerce

• Excellent for re-buy situations.• Brand name recognition important• Requires incentives

• Financial• Convenience• Value-added

• Online exchanges and auctions• Store or warehouse locator

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INTEGRATED LEARNING EXPERIENCESTOP

B-to-B Auction Sites

• Business Finder• Http://www.businessfinder.com

• Paper Exchange• Http://www.paperexchange.com

• E-Steel• Http://www.e-steel.com

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International E-Commerce

• Internet allows for sales worldwide.• Areas to address for international business.

• Communication barriers• Cultural differences• Shipping of merchandise• Internet capabilities in other countries• Payment procedures

• Web sites in different languages.• Call centers in different countries.

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• Internet content search (38%)• Word-of-mouth (30%)• Internet banner (20%)• Television ad (7%)• Print ad (5%)

Source: Don Jeffrey, “Survey Details Consumer Shopping Trends on the Net,” Billboard, (May 29, 1999), Vol. 111, No. 22, p. 47.

F I G U R E 1 4 . 5

What drives people to a new site?

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• Putting the Web address on printed materials and promotional items. (91%)

• Advertising in trade journals. (74%)• Registering the Web site with search

engines for key words. (72%)• Buying banners on other sites. (25%)

F I G U R E 1 4. 6

B2B Techniques to Boost Site Awareness

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This Juno ad was placed in trade magazines to increase business awareness. It alludes to the difficulty of proper targeting.

Http://www.juno.com

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This Buzzsaw.com advertisementwas placed in trade magazines for the construction industry.

The company promises to help business evolve and survive as the industry undergoes rapid change.

http://www.buzzsaw.com

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Interfacing the Internet and the IMC Plan

• Branding• Web site must support brand image• Cyberbranding• Brand spiraling• Halo brand effect

• Brand loyalty• Easier to communicate with loyal customers.• Ability to establish one-on-one communication.

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Interfacing the Internet and the IMC Plan

(continued)• Sales support

• Provide information to sales staff about products and clients.• Quality customer prospects.• Provides information for sales call• Provides history of client.

• Customer service• Reduce cost and provides convenience• FAQs• E-mail questions• Access buyer’s database for product and service

information.• Consumer promotions

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• Clueless banners.• Slow loading front page.• Forcing people to go through

numerous screens.• Too much verbal information.• Too many technical terms.• Hard to navigate.

F I G U R E 1 4 . 7

Clues to Poor Web Design

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• Decide strategic purpose.• Easy access and quick loading.• Written content should be precise.• Content is key• Graphics should support content• Make an offer to encourage a response.• Provide easy to use navigation links on every page.• Use gimmicks to gain attention at the beginning.• Change Web site on a regular basis.• Measure results continually.

Source: Based on Ray Jutkins, “13 Ideas That Could Lead to Successful Web Marketing,” Advertising Age’s Business Marketing, (June 1999), Vol. 84, No. 6, p. 27.

F I G U R E 1 4 . 8Tips for Creating Winning Web sites

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A Web site with clear navigation.Click image to go to site.

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• Examine the role of the Internet in your IMC plan.

• Integrate your Web site with your other marketing programs.

• Will you have multiple Web sites for your different constituencies?

• Develop the opening page of your Web site.

Building Your IMC Campaign