Internet Marketing

Introduction

Parallels with the dawn and growth of TV

1936 – first TV broadcastTV’s impact on distance and time The Andrea Doria and Vietnam

Affect on marketing National markets and brands – built on radio

Consumer changes Consumers adopt lives to TV – Ed Sullivan and

Johnny Carson

New opportunities in TV - cable

Web Explosion

Fascination and Functionality1996 – Al Gore coins “Electronic Highway”Key tools missing – security, frames,

multimedia

Virtuous Web CyclePopular fascination Internet accessWeb sites and content

Stages of Development

Publishing sites Same information provided to all Example – Faculty of Management

Databases and Forms Retrieve information based on user requests Beginnings of real marketing Example – Expedia.com

Personalization Anticipates user requests and responds Least used – form long term relationshps Example – Northwest Airlines

Consumer-to-Consumer

Chatrooms Allow consumers to quickly exchange info.Dangers to marketers

Auction siteseBay from Pez dispensers to ??? “Buyer Beware” - Need for trust

Market MonitoreBay’s Rules

Ratings of seller credibility

Independent verification of buyer and seller identities

Insurance against fraud

Escrow accounts to prevent fraud

Ban sellers bidding on own products

Ban buyers that don’t complete sale

All Work and No Play

Auction sites blur work and playMeasure of success – duration of visitDecember 1998 eBay reports 27 minute averageActivities Tracking auctions Chatting Checking out other possible bids Reading about collectibles

Business-to-Business

Holds greater promise – why?Impacts all areas from product development to supplier networksExtranets Designed for key customers Contain special prices, configurations, dedicated support

and others – CN Call Centre

Intranets Order forms of preferred supplies Lowers cost of purchasing and concentrates sales – New

Flyer

Marketing’s Evolution

Mass Production – commodity productsFord

Selling – product linesGeneral Motors

Brand Management – consumer needsP&G

Customer ManagementFour Seasons

Internet Framework

Marketing ElementsSpeed, customization and dialogue

Technology ElementsNetworks, programming and computers

EconomicsAffordability - making it an appliance

Example - RealAudio