Entrepreneurship and Commerce in IT - 13 - The Internet Audience, consumer behaviour, marketing...

transcript

Entrepreneurship & Commerce in IT

Sachintha Gunasena MBCShttp://lk.linkedin.com/in/sachinthadtg

Recap so far…

Web Payment Systems

• Payment systems • Credit-card e-commerce transactions • E-commerce digital payment in the B2C

arena • Electronic billing and presentment systems

Today…

Web Marketing Concepts

• The Internet audience • Internet traffic patterns • Type of Internet connection: broadband impacts • Consumer behavior models • What consumers shop for and buy online • How shoppers find vendors online • Basic marketing concepts • Internet marketing technologies • Advertising networks • Branding strategies

The Internet Audience

Audience• a group of people who participate in a show or

encounter• a work of art, • literature (in which they are called "readers"), • theatre, • music (in which they are called "listeners"), • video games (in which they are called "players"), • or academics in any medium.

Audience Participation

• Audience members participate • in different ways • in different kinds of art;

• Some events invite overt audience participation

• and others allowing only modest clapping and criticism and reception.

The Internet Audience

• Through the Internet, • every person is given the opportunity • to participate in different ways.

Internet Traffic Patterns

Traffic• the flow in and out• or passage of

• motorized vehicles, unmotorized vehicles, and pedestrians on roads;

• or the commercial transport and exchange of goods;

• or the movement of passengers or people.

Traffic in Computing & Technology

• Internet Traffic• the flow of data around the Internet

• Network Traffic• the flow of data around a network

• Teletraffic• traffic on a communications network

• Web Traffic• the amount of data sent and received by visitors to a web

Internet Traffic Sources

• file sharing• p2p

• bit torrent• streaming media

• youtube

Internet Traffic Management

• Managed through ISP’s

Monitoring the Internet Traffic

• to be discussed• http://www.audiencedialogue.net/kya15b.ht

Monitoring the Internet Traffic

• http://www.internettrafficreport.com

Type of Internet Connection:

Broadband Impact

Impact of Broadband on E-Commerce

• to be discussed

Consumer Behaviour Models

Consumer vs Buyer• Consumer

• a person or organization that uses economic services or commodities.

• pays to consume goods and services produced• Buyer

• any person who contracts to acquire an asset in return for some form of consideration.

• purchases finished goods, typically for resale, for a firm, government, or organization.

Consumer Behaviour• the study of • individuals, groups, or organizations • and the processes they use • to select, secure, use, and dispose of

products, services, experiences, or ideas to satisfy needs

• and the impacts that these processes have on the consumer and society.

Consumer Behaviour Cont.d

• It blends elements from • psychology, • sociology, • social anthropology, • marketing • and economics.

Understanding Consumer Behaviour

• While it is important to come up with a product or a service with exceptional quality,• having a clear grasp of how your target

consumers react or behave • and what factors affect their buying patterns

and behavior • will enable you to address their needs • and establish a more successful business.

before that…why does a consumer needs to buy something in the first

place?

Understanding Consumer Behaviour - Maslow’s Hierarchy

of Needs

Understanding Consumer Behaviour - Maslow’s Hierarchy of

Needs Cont.d• Physiological Needs

• must haves for human survival• primary - water, air, food,• secondary - clothing, shelter,

• Safety Needs• personal, financial, health & well being, safety net against

disaster/illness• Love and Belonging

• friendship, intimacy, family

Understanding Consumer Behaviour - Maslow’s Hierarchy of

Needs Cont.d• Esteem

• need to be self-respected• Self-Actualisation

• “what a man can be, he must be”• Self-Transcendence

• The self only finds its actualization in giving itself to some higher goal outside oneself, • in altruism and spirituality.

Models of Consumer Behaviour

• Traditional Models• primary scenarios

• Contemporary Models• simultaneous

Traditional Models of Consumer Behaviour

• Economic Model• Learning Model• Psychoanalytical Model• Sociological Model

Contemporary Models of Consumer Behaviour

• The Howard Sheth Model of Buying Behaviour• The Nicosia Model• The Engle-Collat-Blackwell Model• Engle, Blackwell and Miniard (EBM) Model• Webstar and Wind Model of Organisational

Buying Behaviour• The Sheth Model of Industrial Buying

Economic Model• focuses on the idea that a consumer’s buying pattern is

based on the idea of getting the most benefits while minimizing costs.

• can predict consumer behavior based on the consumer’s purchasing power and the price of competitive products.

• For example, • a consumer will buy a similar product that is being

offered at a lower price to maximize the benefits; • an increase in a consumer’s purchasing power will

allow him to increase the quantity of the products he is purchasing.

Learning Model• based on the idea that consumer behavior is governed by

the need to satisfy basic and learned needs. • Basic needs - food, clothing and shelter• Learned needs - fear and guilt

• Thus, a consumer will have a tendency to buy things that will satisfy their needs and provide satisfaction.

• A hungry customer may pass up on buying a nice piece of jewelry to buy some food, • but will later go back to purchase the jewelry once her

hunger is satisfied.

Psychoanalytical Model

• this model takes into consideration that consumer behavior is influenced by both the conscious and the subconscious mind.

• The three levels of consciousness discussed by Sigmund Freud (id, ego and superego) all work to influence one’s buying decisions and behaviors.

• A hidden symbol in a company’s name or logo may have an effect on a person’s subconscious mind • and may influence him to buy that product

instead of a similar product from another company.

Sociological Model• this model primarily considers that a consumer’s buying

pattern is based on his role and influence in the society. • A consumer's behavior may also be influenced by the

people he/she associates with and the culture that her society exhibits.

• For instance, • a manager and an employee may have different buying

behaviors given their respective roles in the company they work for,

• but if they live in the same community or attend the same church, they may buy products from the same company or brand.

Howard Sheth Model of Buying Behaviour

• to be discussed

Howard Sheth Model of Buying Behaviour Cont.d

Nicosia Model

• to be discussed

Nicosia Model Cont.d

Engel-Kollat-Blackwell (EKB) Model

• to be discussed

Engel-Kollat-Blackwell (EKB) Model Cont.d

Engel-Blackwell-Minirad (EBM) Model

• to be discussed

Engel-Blackwell-Minirad (EBM) Model Cont.d

Consumer Behaviour Model

Consumer Purchase Behaviour

• Awareness ( Need Recognition )• Mass Media

• Search • Catalogs , Sales People , Mass Media , Store Visits , Search engines , site

visits• Evaluation of Alternatives

• Reference Groups , Mass Media , Product Reviews • Purchase

• Promotions , online promotions , discounts • Post Purchase Behavior

• online updates , customer emails

Buyer vs Seller Roles

• to be discussed.

What Consumers Shop for & Buy

Online

what consumers shop for and buy online

• To be discussed in class as this is a general awareness topic.

How Shoppers Find Vendors Online

How to find vendors online

• To be discussed in class as this is a more general awareness topic.

Basic Marketing Concepts

What is Marketing?

• Marketing is a social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others• PHILIP KOTLER

Needs, Wants, Demands

• NEEDS : • A state of felt deprivation of some basic satisfaction

( Food, Clothing, Shelter, Belonging etc. )• WANTS :

• Wants are desires for specific satisfiers of the deeper needs. Needs are few and wants are many .

• DEMANDS : • are wants backed by ------Ability to buy and

Willingness to buy

Products / Offers / Satisfiers / Resources

• Anything that can be offered to someone to satisfy a need or want is a product.

• Product refers to physical object • Services refer to intangible object

Value & Satisfaction• Value

• is the customers’ estimate of the Product’s capacity to satisfy a set of goals

• is the ratio between what the customer gets and what he gives (V=B/C)

• Customer gets benefits & assume costs • WHEN :

• Customer Expectance = Performance => satisfied• Customer Expectance > Performance => dis-satisfied• Customer Expectance < Performance => Highly satisfied

Exchange & Transaction

• Exchange • is the act of obtaining a desired product by offering something in

return• takes place when 5 conditions are satisfied:

(a) Two parties should be there

(b) Each party must have something of value to the other

(c) Each party is capable of communication & delivery

(d) Each party is free to accept or reject the offer

(e) Each party believes that it is appropriate to deal with the other party

What is a Market?• A market consists of

• all the potential customers • sharing a particular need or want • who might be willing and able • to engage in exchange • to satisfy that need or want.

What is Marketing?

• the management process which identifies, anticipates, and supplies customer requirements efficiently and profitably

Business is Marketing• Marketing can not be considered as a separate

function, • it is the whole business, • seen from the point of view of its final

results…• that is profit,• through customer satisfaction

• PETER DRUCKER

A Simple Marketing System

What is Marketing Management?

• the analysis, planning, implementation and control of programs designed • to create, build and maintain beneficial

exchanges and relationships with target markets

• for the purpose of achieving Organisational objectives.

State of Demand & Marketing Task

Evolution of Marketing Management

• Marketing management has evolved through following stages :

(1) Production Orientation Stage

(2) Sales Orientation Stage

(3) Marketing Orientation Stage

(4) Social Responsibility & Human Orientation Stage

Marketing Concepts• FIVE competing concepts under which

organizations conduct their marketing activities:

1. The Production Concept

2. The Product Concept

3. The Selling Concept

4. The Marketing Concept

5. The Societal Marketing Concept

The Production Concept

• Consumers will favour those products that are widely available and low in cost.

• Therefore increase production and cut down costs.

• And build profit through volume.

The Product Concept• Consumers will favour those products that

offer the most quality, performance, or innovative features.

• Therefore, improve quality, performance and features.

• This would lead to increased sales and profits.

The Selling Concept

• Consumers, if left alone, will not buy enough of company’s products.

• Therefore, promote sales aggressively.• And,build profit through quick turnover.

The Marketing Concept• The key to achieving organizational goals

consist in • determining the needs and wants of target

markets • and delivering the desired satisfactions • more effectively and efficiently than

competitors.• And build profit through customer satisfaction

and loyalty.

The Societal Marketing Concept

• It is Marketing Concept + Society’s well being.

• Balancing of following three considerations while setting marketing policies : • Customer’s want satisfaction • Society’s well being • Company’s profits

Marketing

• a lot more to learn• will discuss some of the concepts in a later

session

Internet Marketing Technologies

• to be discussed on the next session

Advertising Networks

• a company that connects advertisers to web sites that want to host advertisements

• key function is aggregation of ad space supply from publishers and matching it with advertiser demand

Branding Strategies

Branding• The marketing practice of creating

• a name, • symbol • or design • that identifies and differentiates • a product from other products .

Branding Cont.d

• your brand is your promise to your customer

• tells them what they can expect from your products and services, and it differentiates your offering from that of your competitors

How to define a Brand?

• What is your company's mission?• What are the benefits and features of your

products or services?• What do your customers and prospects

already think of your company?• What qualities do you want them to

associate with your company?

How to create a Brand

• Get a great logo. • Place it everywhere.

• Write down your brand messaging. • What are the key messages you want to

communicate about your brand? • Every employee should be aware of your

brand attributes.

How to create a Brand Cont.d

• Integrate your brand. • Branding extends to every aspect of your

business• how you answer your phones, • what you or your salespeople wear on sales

calls, • your e-mail signature, • everything.

• Create a "voice" for your company that reflects your brand. • This voice should be applied to all written

communication and incorporated in the visual imagery of all materials, online and off.

• Is your brand friendly? Be conversational. • Is it ritzy? Be more formal. • You get the gist.

• Develop a tagline. • Write a memorable, meaningful and concise

statement that captures the essence of your brand.

• Design templates and create brand standards for your marketing materials. • Use the same color scheme, logo placement,

look and feel throughout. • You don't need to be fancy, just consistent.

• Be true to your brand. • Customers won't return to you

• or refer you to someone else• if you don't deliver on your brand promise.

• Be consistent. • This tip involves all the above and is the most important

tip on this list. • If you can't do this, your attempts at establishing a brand

will fail.

Brand Strategy

• Long-term marketing support for a brand, based on the definition of the characteristics of the target consumers.

• It includes understanding of their preferences, and expectations from the brand.

Components of a Branding Strategy

• Purpose• Functional

• This concept focuses on the evaluations of success in terms of immediate and commercial reasons -- i.e. the purpose of the business is to make money.

• Intentional

• This concept focuses on success as it relates to the ability to make money and do good in the world.

Components of a Branding Strategy Cont.d

• Consistency• avoid talking about things that don’t relate

to or enhance your brand• create a style guide• e.g.

• https://blog.hubspot.com/marketing/web-design-style-guide-examples

• Emotion• Customers aren't always rational.• Find a way to connect to your customers on a deeper,

more emotional level. • Do you give them peace of mind? • Make them feel like part of the family? • Do you make life easier?

• Use emotional triggers like these to strengthen your relationship and foster loyalty.

• Flexibility• In this fast-changing world, marketers

must remain flexible to stay relevant.• engage your followers in fresh, new ways

• Employee Involvement• important for your employees to be well

versed in the how they should be communicating with customers and representing the brand

• e.g. if a playful brand - customer support should be playful/ cheerful too

• Loyalty• reward customers for being with the brand• loyalty cards/ offers• At the end of the day, highlighting a

positive relationship between you and your existing customers sets the tone for what potential customers can expect if they choose to do business with you.

• Competitive Awareness• Take the competition as a challenge to

improve your own strategy and create greater value in your overall brand.

• You are in the same business and going after the same customers, right? So watch what they do.

References• https://en.wikipedia.org/wiki/Web_traffic• https://en.wikipedia.org/wiki/Teletraffic_engineering• https://en.wikipedia.org/wiki/Network_traffic• https://en.wikipedia.org/wiki/Internet_traffic• http://www.comscore.com/Insights/Press-Releases/2009/1/Global-Inter

net-Audience-1-Billion• http://www.myownbusiness.org/s9/• https://www.google.com/transparencyreport/traffic/#expand=TJ• http://www.menog.org/presentations/menog-6-7-8-9/MENOG-Trends%2

0in%20Internet%20Traffic%20Patterns_0.pdf

References• http://www.internettrafficreport.com• https://en.wikipedia.org/wiki/Consumer_behaviour• http://www.ehow.com/info_8083297_different-models-consumer-behavior.html• https://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs• http://www.inboundnow.com/10-online-marketing-trends-predictions-2015/• https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/the-marketing-enviro

nment-3/technology-32/use-of-new-technologies-in-marketing-and-research-171-4044/• http://marketing.about.com/od/internetmarketingstrategy/• http://www.exacttarget.com/blog/5-marketing-technology-trends-to-watch-in-2014/• http://www.entrepreneur.com/encyclopedia/branding• http://www.businessdictionary.com/definition/brand-strategy.html• http://www.designdamage.com/the-12-principles-of-brand-strategy/#axzz3pa4QlWwe• https://blog.hubspot.com/blog/tabid/6307/bid/31739/7-Components-That-Comprise-a-Comprehensive-

Brand-Strategy.aspx

Next Up…

• Web Marketing Communications

Thank you.

Entrepreneurship and Commerce in IT - 13 - The Internet Audience, consumer behaviour, marketing...

Small Business & Entrepreneurship