Internet Marketing

15
chapter

Prepared by
Deborah Baker
Texas Christian University

Chapter 15 Version 3e ©2003 South-Western 1

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

19 2. Describe the current Internet marketing

environment.
chapter

3. Discuss online business strategies.

4. Discuss Internet marketing objectives and

strategies.
Chapter 15 Version 3e ©2003 South-Western 2
 1
Learning Objective

Describe the impact of the Internet

on business practices.

Chapter 15 Version 3e ©2003 South-Western 3

 1
Electronic Marketing Channel
Find out about products

Get answers to questions The New

Business
Leave messages Franchise

Solve problems

Make purchases
Chapter 15 Version 3e ©2003 South-Western 4
Customer Relationship Marketing 1
on the Internet

Profiles of preferences

E-mail notifications

Opportunities
for Customer service
Customer
Relationship Convenient online
Marketing shopping

Chapter 15 Version 3e ©2003 South-Western 5

 1
Financial Implications

Competitive advantage

Reduction in expenses

Reduced inventory

Lower financial
barriers to entry
Chapter 15 Version 3e ©2003 South-Western 6
Marketing Research 1
through the Web
Vast information sources for
secondary research

Better primary research

The Web
Web-based surveys and
in focus groups
Marketing
Research Information
about competitors

Chapter 15 Version 3e ©2003 South-Western 7

Advantages of 1
Electronic Publications
Easier access to worldwide information

Information content that is more current

The ability to make complex searches

Incorporation of multi-media

Lower publication costs

Chapter 15 Version 3e ©2003 South-Western 8
 1
Internet Marketing Plan
Specific Internet Marketing
Objectives and Strategies

Statement of Company’s
online Business Strategy

Analysis of Internet
Marketing Environment

Chapter 15 Version 3e ©2003 South-Western 9

 2
Learning Objective

Describe the current Internet

marketing environment.

Chapter 15 Version 3e ©2003 South-Western 10

 2
Basic Forms of Virtual Business

Business-to-Consumer
(B2C)
Basic Forms
of
Electronic
Commerce

Business-to-Business
(B2B)

Chapter 15 Version 3e ©2003 South-Western 11

 2
Internet Demographics and Trends
Attitude toward technology

Factors
Influencing Income
Online
Buying
Behavior

Motivation to use
Technology

Chapter 15 Version 3e ©2003 South-Western 12

 2
Internet Demographics and Trends
Early Adopters

Internet
Buyer “Mainstreamers”
Categories

Laggards

Chapter 15 Version 3e ©2003 South-Western 13

 2
Internet Demographics and Trends

Push Strategy
Television, Radio, Print

Pull Strategy
Internet

Chapter 15 Version 3e ©2003 South-Western 14

 2
The Virtual Community
Bulletin Boards

Chat Rooms
Types of
Virtual
Communities
Newsletters

Discussion Lists

Chapter 15 Version 3e ©2003 South-Western 15

Internet’s Influence on 2
The Global Village

Broadens and enhances access

in developing nations

Allows businesses to “leapfrog”

into development

Levels playing field for

disadvantaged countries

Chapter 15 Version 3e ©2003 South-Western 16

 2
The Digital World
Speed

Global
Marketing
Implications

Value
Chapter 15 Version 3e ©2003 South-Western 17
 3
Learning Objective

Discuss online business strategies.

Chapter 15 Version 3e ©2003 South-Western 18

 3
Strategies for Web Success
Offer customer-driven
products

Sell at a fair price

To Survive
and Prosper...
Use promotion

Make products readily

available
Chapter 15 Version 3e ©2003 South-Western 19
 3
Examples of Internet Strategies
Increase or enhance exposure

Improve customer service

Provide new products/services

Add value to existing products/services

Lower overall company costs

Create
Chapter 15 Version 3e one-to-one customer
©2003 South-Western relationships 20
 3
Online Positioning
 Identify the most important target
market
 Identify that market’s online need
 Determine how the company’s Internet
presence meets that need
 Identify how the online presence is
better than the competition.
Chapter 15 Version 3e ©2003 South-Western 21
Factors in Internet 3
Marketing Programs
Prior Internet
marketing experience

Degree of program
Factors sophistication
in
Internet
Program Magnitude
Marketing

Program Dynamics
Chapter 15 Version 3e ©2003 South-Western 22
 3
The Internet Presence

E-Mail

Internet
Marketing
Techniques Corporate Web Site

Interactive Web Site

Chapter 15 Version 3e ©2003 South-Western 23

 3
Uses of Interactive Web Sites

Execute Transactions
Welcome
to my Web Site.

You are Deliver Electronic

Visitor Number Products and Services
495,251

Collect Demographic and

Behavioristic Customer Data

Chapter 15 Version 3e ©2003 South-Western 24

 3
Internet Direct Selling
Advantages Disadvantages

 Eliminate distribution  Need to manage all

network complexity channel activities

 Increase customer
contact

Chapter 15 Version 3e ©2003 South-Western 25

 3
E-Tailing

Retailing on the Web

Chapter 15 Version 3e ©2003 South-Western 26

Internet Shopping vs. 3
Store 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

Chapter 15 Version 3e ©2003 South-Western 27

 4
Learning Objective

Discuss Internet marketing

objectives and strategies.

Chapter 15 Version 3e ©2003 South-Western 28

Key Success Factor for 4
Internet Businesses

Chapter 15 Version 3e ©2003 South-Western 29

 4
Internet Marketing Objectives
Online Market Share

Sales Level
Internet
Marketing Repeat Purchase
Objectives
Market Positioning

Image

Brand Awareness
Chapter 15 Version 3e ©2003 South-Western 30
 4
Product Strategies on the Web
Ways to Overcome
Lack of
Product Contact

Personalized Virtual online

Service Product Trials

Branding

Chapter 15 Version 3e ©2003 South-Western 31

 4
Online Promotion
Banner Advertisements

Button Advertisements

Interstitial Advertisements

Untargeted E-Mail Marketing

Targeted E-Mail Marketing

Chapter 15 Version 3e ©2003 South-Western 32
 4
Pricing on the Internet
Charging different prices for
different channels 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

Chapter 15 Version 3e ©2003 South-Western 33

 4
Evaluating the Outcome
Hits

Page View
Capturing
Web
Statistics
Site Registration

Cookie Technology
Chapter 15 Version 3e ©2003 South-Western 34