1Chapter 19 Version 7e ©2004 South-Western College Publishing Prepared by Deborah Baker Texas...

1 Chapter 19 Version 7e©2004 South-Western College Publishing

Prepared byPrepared byDeborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University

Chapter 19

Internet MarketingInternet Marketing


Learning ObjectivesLearning Objectives

1. Describe the impact of the Internet on business practices.

2. Describe the current Internet marketing environment.

3. Discuss on-line business strategies.

4. Discuss Internet marketing objectives and strategies.


Learning Objective Learning Objective

Describe the impact of the Internet on business practices.

11

On Linehttp://www.pg.com

On Linehttp://www.pg.com


Electronic Marketing ChannelElectronic Marketing Channel

The NewThe NewBusinessBusinessFranchiseFranchise

AdvertisingAdvertising

Customer ServiceCustomer Service

Marketing ResearchMarketing Research

TransactionsTransactions

Distribution & Product Development

Distribution & Product Development

11


Customer Relationship MarketingCustomer Relationship Marketingon the Interneton the Internet

OpportunitiesOpportunitiesforfor

Customer Customer RelationshipRelationship

MarketingMarketing

OpportunitiesOpportunitiesforfor

Customer Customer RelationshipRelationship

MarketingMarketing

Profiles of preferencesProfiles of preferences

E-mail notificationsE-mail notifications

Customer serviceCustomer service

Convenient on-line shopping

Convenient on-line shopping

11


Financial ImplicationsFinancial Implicationsof the Internetof the Internet

Competitive advantage Competitive advantage

Reduction in expensesReduction in expenses

Reduced inventoryReduced inventory

11


Vast information sources for secondary research

Vast information sources for secondary research

Better primary research techniques

Better primary research techniques

Web-based surveys andfocus groups

Web-based surveys andfocus groups

Competitive Intelligence activities

Competitive Intelligence activities

On Linehttp://www.mapinfo.comhttp://www.plurimus.comhttp://informationweek.com

On Linehttp://www.mapinfo.comhttp://www.plurimus.comhttp://informationweek.com

Marketing ResearchMarketing Researchthrough the Webthrough the Web

11


Integrating Conventional andIntegrating Conventional andInternet Marketing StrategiesInternet Marketing Strategies

Be consistent with slogans, appearance, and other cues

Use the Internet to enhance already successful marketing programs

Write an Internet marketing plan

11

Integrated Marketing Communications Strategy

Integrated Marketing Communications Strategy

On Linehttp://www.mountaindew.com

On Linehttp://www.mountaindew.com


Elements of an Elements of an Internet Marketing PlanInternet Marketing Plan

Analysis of InternetMarketing Environment

Analysis of InternetMarketing Environment

Statement of Company’sOn-Line Business StrategyStatement of Company’s

On-Line Business Strategy

Specific Internet MarketingObjectives and Strategies

Specific Internet MarketingObjectives and Strategies

11



Describe the current Internet marketing environment.

22


Basic Forms of Virtual Basic Forms of Virtual BusinessBusiness

Business-to-Consumer(B2C)

Business-to-Consumer(B2C)

Basic Formsof

ElectronicCommerce

Basic Formsof

ElectronicCommerce

Business-to-Business(B2B)

Business-to-Business(B2B)

22


Internet Demographics and Internet Demographics and TrendsTrends

FactorsFactorsInfluencingInfluencing

On-LineOn-LineBuying Buying

Behavior Behavior

FactorsFactorsInfluencingInfluencing

On-LineOn-LineBuying Buying

Behavior Behavior

Attitude toward technology

Income

Motivation to useTechnology

22


InternetInternetBuyer Buyer

Categories Categories

InternetInternetBuyer Buyer

Categories Categories

Early Adopters

“Mainstreamers”

Laggards

Internet Demographics and Internet Demographics and TrendsTrends

22


The Global VillageThe Global Village

Broadens and enhances accessin developing nations

Broadens and enhances accessin developing nations

Allows businesses to “leapfrog” into development

Allows businesses to “leapfrog” into development

Levels playing field fordisadvantaged countriesLevels playing field for

disadvantaged countries

22



Discuss on-line business strategies.

33On Linehttp://www.dotcomdoom.comhttp://www.infotrac-college.com

On Linehttp://www.dotcomdoom.comhttp://www.infotrac-college.com


Strategies for Web Success Strategies for Web Success

To SurviveTo Surviveand Prosper...and Prosper...

Sell at a fair price

Use promotion

Make products readilyavailable

Offer customer-drivenproducts

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Examples of Internet Examples of Internet StrategiesStrategies

Increase or enhance exposureIncrease or enhance exposure

Improve customer serviceImprove customer service

Provide new products/servicesProvide new products/services

Add value to existing products/servicesAdd value to existing products/services

Lower overall company costsLower overall company costs

Create one-to-one customer relationshipsCreate one-to-one customer relationships

33


On-Line PositioningOn-Line Positioning

Identify the most important target market

Identify that market’s on-line need

Determine how the company’s Internet presence meets that need

Identify how the on-line presence is better than the competition.

33


FactorsFactorsinin

InternetInternetMarketingMarketing

Degree of programsophistication

Program magnitude

Program dynamics

Prior Internet marketing experience

33 Factors in Internet Factors in Internet Marketing ProgramsMarketing Programs


The Internet PresenceThe Internet Presence33


TechniquesTechniques


TechniquesTechniques

E-Mail

Corporate Web Site

Interactive Web Site


Uses of Interactive Web SitesUses of Interactive Web Sites

Execute TransactionsExecute Transactions

Deliver Electronic Products and Services

Deliver Electronic Products and Services

Collect Demographic and Behavioristic Customer DataCollect Demographic and

Behavioristic Customer Data

Welcome to my Web Site.

You are Visitor Number

515,251

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Internet Direct SellingInternet Direct Selling

AdvantagesAdvantagesAdvantagesAdvantages

Eliminates intermediaries in distribution network

Increases direct customer contact

DisadvantagesDisadvantagesDisadvantagesDisadvantages

Company needs to manage all channel activities

33


E-TailingE-Tailing

Retailing on the Web

33


Internet Shopping vs. Internet Shopping vs. Store ShoppingStore Shopping

For many, Internet shopping is more convenient and less expensive

Store shopping provides product “touch and feel”

E-tailing changes shopping from entertainment to a functional task

33


E-MarketplaceE-Marketplace

An on-line marketplace that

acts as a channel

intermediary to bring

together buyers and sellers

to form a virtual exchange

community.

33



Discuss Internet marketing objectives and strategies.

44


Key Success Factor forKey Success Factor forInternet BusinessesInternet Businesses

44


Internet Marketing ObjectivesInternet Marketing Objectives

InternetInternetMarketingMarketingObjectivesObjectives

InternetInternetMarketingMarketingObjectivesObjectives

Sales LevelSales Level

Repeat PurchaseRepeat Purchase

Market PositioningMarket Positioning

ImageImage

Brand AwarenessBrand Awareness

On-Line Market ShareOn-Line Market Share

44


Product Strategies on the Product Strategies on the WebWeb

Personalized Service

Personalized Service

Virtual On-Line Product Trials

Virtual On-Line Product Trials

Ways to OvercomeWays to OvercomeLack of Lack of

Product ContactProduct Contact

Ways to OvercomeWays to OvercomeLack of Lack of

Product ContactProduct Contact

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BrandingBranding


On-Line PromotionOn-Line Promotion

Banner AdvertisementsBanner Advertisements

Button AdvertisementsButton Advertisements

Interstitial AdvertisementsInterstitial Advertisements

Untargeted E-Mail MarketingUntargeted E-Mail Marketing

Targeted E-Mail MarketingTargeted E-Mail Marketing

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E-ZinesE-Zines

Focused on a particular topicFocused on a particular topic

Provide means of contact with clienteleProvide means of contact with clientele

Inform customers of new productsInform customers of new products

Generate income by ad space salesGenerate income by ad space sales

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On Linehttp://www.turbotax.com

On Linehttp://www.turbotax.com


Charging different prices Charging different prices for different channels for different channels

can be effective if:can be effective if:

Channel use behavior is an effective means to segment the market

There is a benefit to encourage use of one channel rather than the other

44 Pricing on the InternetPricing on the Internet


Evaluating the OutcomeEvaluating the Outcome

HitsHits

44

Page ViewPage View

ClickstreamsClickstreams

Cookie TechnologyCookie Technology

CapturingWeb

Statistics

CapturingWeb

Statistics

1Chapter 19 Version 7e ©2004 South-Western College Publishing Prepared by Deborah Baker Texas...

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