Chapter 14 Ver 2e1 ©2000 South-Western College Publishing Internet Marketing Chapter 14 Prepared by...

Chapter 14 Ver 2e 1©2000 South-Western College Publishing

Internet MarketingInternet MarketingChapter 14Chapter 14

Prepared byPrepared byDeborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University

Chapter 14 Ver 2e 2

Chapter 14 ObjectivesChapter 14 Objectives

1. Understand how the Internet affects marketing.

2. Describe various forms of Internet marketing.

3. Discuss strategic considerations about Internet marketing.

(continued)

©2000 South-Western College Publishing

Chapter 14 Ver 2e 3

Chapter 14 ObjectivesChapter 14 Objectives

4. Discuss financial implications of Internet marketing.

5. Explain how to incorporate Internet marketing into an overall marketing plan.

6. Discuss several trends and the effects they may have on Internet marketing in the future.


Chapter 14 Ver 2e 4

The Internet and the World Wide WebThe Internet and the World Wide Web


1960s Developed in the

by the U.S. military

1960s Developed in the

by the U.S. military

Use by research institutes and universities (Internet)

Use by research institutes and universities (Internet)

1991Commercial activity

permitted

1991Commercial activity

permitted

Chapter 14 Ver 2e 5

Leave messages for firm’s people

Find out more about the company

Solve problems

Make purchases

The New Business FranchiseThe New Business Franchise


The The Virtual Virtual StoreStore

The The Virtual Virtual StoreStore

Get answers to questions

Find out about products/services

Chapter 14 Ver 2e 6

Web Survival Web Survival RequirementsRequirementsWeb Survival Web Survival RequirementsRequirements

Products that fulfill needsProducts that fulfill needs

Product promotionProduct promotion

Products that are availableProducts that are available

Products at a fair priceProducts at a fair price

Playing in the Big LeaguePlaying in the Big League


Chapter 14 Ver 2e 7

Playing in the Big LeaguePlaying in the Big League


AdvantagesAdvantages

Building a SmallBuilding a Small Internet Business Internet BusinessBuilding a SmallBuilding a Small

Internet Business Internet Business

DisadvantagesDisadvantages

Smaller financial investment

Agility to make strategic changes

Considerable time investment

Requires technological competence

Chapter 14 Ver 2e 8

The Internet’s Online PopulationThe Internet’s Online Population


Canada/US57%Europe

21%

MidEast1%

S.America3%

Africa1%

Asia-Pacific17%

Canada/US57%Europe

21%

MidEast1%

S.America3%

Africa1%

Asia-Pacific17%

Chapter 14 Ver 2e 9

Internet International OpportunitiesInternet International Opportunities


Offers relatively cheap, versatile, and technically efficient service

Offers relatively cheap, versatile, and technically efficient service

Allows businesses in developing countries to “leapfrog” intothe development mainstream

Allows businesses in developing countries to “leapfrog” intothe development mainstream

Eliminates disadvantages, such as distance from markets,under-invested infrastructure, and under-utilized capacity

Eliminates disadvantages, such as distance from markets,under-invested infrastructure, and under-utilized capacity

Chapter 14 Ver 2e 10

Forms of Internet MarketingForms of Internet Marketing


Customer RelationshipMarketing

Customer RelationshipMarketing

Internet RetailingInternet Retailing

AdvertisingAdvertising

Newsletter andDiscussion ListsNewsletter and

Discussion Lists

E-MailE-Mail

Current FormsCurrent Formsof Internetof InternetMarketingMarketing

Current FormsCurrent Formsof Internetof InternetMarketingMarketing


Forms of Internet MarketingForms of Internet Marketing


E-Mail MarketingE-Mail Marketing

UntargetedUntargeted TargetedTargeted

No/Minimal Cost “Spamming” Often offensive Ineffective

“Qualified” recipients Cost of $.15-.30 per

address


Newsletter and Discussion List MarketingNewsletter and Discussion List Marketing


Advantages Advantages of “Ezines” of “Ezines”

Focused on a particular subject or topic

Provide a means to stay in touch with clientele

Inform customers of new products and services

Generate income by selling advertising space


Differences in Ezines vs. Paper Differences in Ezines vs. Paper


Ezines cost little or no moneyEzines cost little or no money

Target individuals using e-mail list serviceTarget individuals using e-mail list service

Subscriptions can be offered for freeSubscriptions can be offered for free

Subscriptions grow as newsletter is sharedSubscriptions grow as newsletter is shared

Discussion list participants can exchange ideasDiscussion list participants can exchange ideas


Advertising on the WebAdvertising on the Web


1998 Web Advertising

Banner 56%

Sponsored Sites30%

"other"8%

E-mail1%

Interstitial5%

1998 Web Advertising

Banner 56%

Sponsored Sites30%

"other"8%

E-mail1%

Interstitial5%

Faster growth than any other media in history

Faster growth than any other media in history


Internet RetailingInternet Retailing


AdvantagesAdvantages DisadvantagesDisadvantages

Shop “24 / 7 / 365”

Easy to “window shop”

Get lower prices

Convenient delivery

No social experience

No “feel” of products

No individual rapport


Internet Demographics and TrendsInternet Demographics and Trends


Motivation to use technology

Motivation to use technology

IncomeIncome

Attitude toward technology

Attitude toward technologyFactors thatFactors that

InfluenceInfluenceOn-LineOn-LineBuyingBuying

BehaviorBehavior

Factors thatFactors thatInfluenceInfluenceOn-LineOn-LineBuyingBuying

BehaviorBehavior


Internet Buyer CategoriesInternet Buyer Categories

Early AdoptersEarly Adopters

MainstreamMainstream

LaggardsLaggards



Marketing Research Through the WebMarketing Research Through the Web


Easier access to informationEasier access to information

Current information contentCurrent information content

Complex searchesComplex searches

Multi-mediaMulti-media

Lower publication costsLower publication costs

AdvantagesAdvantagesof Electronic of Electronic Publications Publications

overoverPrint Media Print Media

AdvantagesAdvantagesof Electronic of Electronic Publications Publications

overoverPrint Media Print Media


Marketing Research Through the WebMarketing Research Through the Web

PrimaryPrimaryResearch Research

usingusingthe Webthe Web

E-mail Surveys

InternetFocuses Groups

Web-based Surveys


Overnight BillionairesOvernight Billionaires


Build a profitable company to attract long-term loyalty

Build a profitable company to attract long-term loyalty

Acquire shares of other companies

Acquire shares of other companies

Sell the firm to a more established company

Sell the firm to a more established company

Ways to Convert Virtual Wealth into Actual Wealth

Ways to Convert Virtual Wealth into Actual Wealth

$ $

$ $

$ $


Creating an Internet Marketing Plan Creating an Internet Marketing Plan

Purpose or GoalPurpose or Goal

Target AudienceTarget Audience

Marketing MixMarketing Mix

Integrated Marketing StrategyIntegrated Marketing Strategy

Required Resources Required Resources

Means for EvaluationMeans for Evaluation

Elements ofElements ofan Internet an Internet

Marketing Plan Marketing Plan

Elements ofElements ofan Internet an Internet

Marketing Plan Marketing Plan


Setting Internet Marketing Goals Setting Internet Marketing Goals

Consider ways the Internet can be used toConsider ways the Internet can be used to......Consider ways the Internet can be used toConsider ways the Internet can be used to......

Increase or enhance company exposure Increase or enhance company exposure

Improve customer serviceImprove customer service

Provide new products or servicesProvide new products or services

Add value to existing products or servicesAdd value to existing products or services

Lower overall costs for the companyLower overall costs for the company

Create one-to-one relationships with customersCreate one-to-one relationships with customers


Determining the Marketing Mix Determining the Marketing Mix

InternetInternetvs.vs.

ConventionalConventionalChannels Channels

Promotion Encounters

Direct Product Experience

Price Changes

Physical Contact


Integrate Integrate Conventional Conventional

and and Internet Internet

StrategiesStrategies

Augment existing marketing programs

Integrating Marketing StrategiesIntegrating Marketing Strategies

Project a consistent and coherent presence

Enhance successful marketing programs


Establishing an Internet Marketing Budget Establishing an Internet Marketing Budget


Prior experience in running an Internet marketing program

Prior experience in running an Internet marketing program

Degree of program sophisticationDegree of program sophistication

Availability of internal resourcesAvailability of internal resources

Magnitude of the programMagnitude of the program

Dynamics of the programDynamics of the program


Evaluating the OutcomeEvaluating the Outcome


Important ConsiderationsImportant Considerations

Are we reaching the target audience?

Who is visiting the web site?

Can visitors easily move around the web site?

Are visitors getting what they want?


Trends Affecting Internet MarketingTrends Affecting Internet Marketing


Revenue pirating from brick-and-mortar counterparts

Presence of leaner, more flexibleorganizations

Increased consumer participation invirtual communities

Further expansion of the Internet into the global arena


The Agile OrganizationThe Agile Organization


Coping in a ChangingEnvironment

Coping in a ChangingEnvironment

Have an acute feeling of paranoia

Foster creative and strategic thought

Create an agile organization

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