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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.
©2000 South-Western College Publishing
Chapter 14 Ver 2e 4
The Internet and the World Wide WebThe Internet and the World Wide Web
©2000 South-Western College Publishing
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
©2000 South-Western College Publishing
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
©2000 South-Western College Publishing
Chapter 14 Ver 2e 7
Playing in the Big LeaguePlaying in the Big League
©2000 South-Western College Publishing
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
©2000 South-Western College Publishing
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
©2000 South-Western College Publishing
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
©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 11
Forms of Internet MarketingForms of Internet Marketing
©2000 South-Western College Publishing
E-Mail MarketingE-Mail Marketing
UntargetedUntargeted TargetedTargeted
No/Minimal Cost “Spamming” Often offensive Ineffective
“Qualified” recipients Cost of $.15-.30 per
address
Chapter 14 Ver 2e 12
Newsletter and Discussion List MarketingNewsletter and Discussion List Marketing
©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 13
Differences in Ezines vs. Paper Differences in Ezines vs. Paper
©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 14
Advertising on the WebAdvertising on the Web
©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 15
Internet RetailingInternet Retailing
©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 16
Internet Demographics and TrendsInternet Demographics and Trends
©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 17
Internet Buyer CategoriesInternet Buyer Categories
Early AdoptersEarly Adopters
MainstreamMainstream
LaggardsLaggards
©2000 South-Western College Publishing
Chapter 14 Ver 2e 18
Marketing Research Through the WebMarketing Research Through the Web
©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 19©2000 South-Western College Publishing
Marketing Research Through the WebMarketing Research Through the Web
PrimaryPrimaryResearch Research
usingusingthe Webthe Web
E-mail Surveys
InternetFocuses Groups
Web-based Surveys
Chapter 14 Ver 2e 20
Overnight BillionairesOvernight Billionaires
©2000 South-Western College Publishing
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
$ $
$ $
$ $
Chapter 14 Ver 2e 21©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 22©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 23©2000 South-Western College Publishing
Determining the Marketing Mix Determining the Marketing Mix
InternetInternetvs.vs.
ConventionalConventionalChannels Channels
Promotion Encounters
Direct Product Experience
Price Changes
Physical Contact
Chapter 14 Ver 2e 24©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 25
Establishing an Internet Marketing Budget Establishing an Internet Marketing Budget
©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 26
Evaluating the OutcomeEvaluating the Outcome
©2000 South-Western College Publishing
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?
Chapter 14 Ver 2e 27
Trends Affecting Internet MarketingTrends Affecting Internet Marketing
©2000 South-Western College Publishing
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
Chapter 14 Ver 2e 28
The Agile OrganizationThe Agile Organization
©2000 South-Western College Publishing
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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