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INTERNET
INTERNETThe ‘e’ Age
Business ToolThe ‘e’ Age
Business ToolJiten K. GoradiaJiten K. Goradia
2
eVOLUTIOeVOLUTION of N of
INTERNETINTERNET
eVOLUTIOeVOLUTION of N of
INTERNETINTERNET
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In a nutshellIn a nutshell
Started as a small US govt. project in 1970Started as a small US govt. project in 1970
The Advanced Research Project Agency (ARPA)linked their computers, called it ARPANET
The Advanced Research Project Agency (ARPA)linked their computers, called it ARPANET
Today the Internet has million of computers from individuals, small networks to mega
networks
Today the Internet has million of computers from individuals, small networks to mega
networks
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Stages Of EvolutionStages Of Evolution
wwwwwwWorld Wide WebWorld Wide Web
wwwwwwWorld Wide WebWorld Wide Web
FTP FTP File Transfer ProtocolFile Transfer Protocol
FTP FTP File Transfer ProtocolFile Transfer Protocol
Gopher- Menu Style Information Browsing and Searching
Gopher- Menu Style Information Browsing and Searching
Touch tone (digital) phones
Personal Computers
Sputnik & Space race
Affordable flying
Main frame computers
Cell phones
Instant Messaging
Trains (standardized time zones)
Electric typewriters
Interstate Highway System
Internet
Teleportation?
Automobiles
Personal Fax Machines
Assembly lines & mass production
La
te 1
80
0’s
19
00
19
50
19
60
19
70 1
98
0
19
90
20
00
20th Century
Speed, Complexity
Volume Increases
Events that have increased the Speed, Complexity, & Volume of work in an information & knowledge world
Technology & Life Technology & Life
Not Many events/inventions have
impacted life as much as the INTERNET
Not Many events/inventions have
impacted life as much as the INTERNET
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Information On InternetInformation On InternetAll worldwide published information
Between 1999 & 2002 the total amount of all information published in the world doubled
(equaled the amount published in all 4000 years of recorded history)
4000
3000
0 2000
1000
2000
AD
1000
AD0
1000
BC
2000
BC
1999 - 20024000+ years
of recorded history
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The Four Virtual SpacesThe Four Virtual Spaces
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MARKeTING MARKeTING on the on the
INTERNETINTERNET
MARKeTING MARKeTING on the on the
INTERNETINTERNET
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Basic Forms of Virtual BusinessBasic Forms of Virtual Business
Business-to-Consumer(B2C)
Business-to-Consumer(B2C)
Basic Formsof
ElectronicCommerce
Basic Formsof
ElectronicCommerce
Business-to-Business(B2B)
Business-to-Business(B2B)
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The Internet PresenceThe Internet Presence
InternetInternetMarketingMarketing
TechniquesTechniques
InternetInternetMarketingMarketing
TechniquesTechniques
Corporate Web Site
Interactive Web Site
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Characteristics of Internet UsersCharacteristics of Internet UsersGrouped around common INTERESTS
– Interests can be personal or professional– Interests can be information or entertainment
driven– Interests also drive ‘word of email’ marketing– Users who are ‘Instant Decision Makers’
Geographically Dispersed– Access to a world-wide customer base– Hit rates may be low but cost of per
successful response is highly attractive
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The Opportunity - 1 to 1 MarketingThe Opportunity - 1 to 1 Marketing
1 – 1 Marketin
g
1 – 1 Marketin
g
InteractionInteraction
IdentificationIdentification
TrackingTracking
DifferentiationDifferentiation
CustomizationCustomization
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Two Primary ConsiderationsTwo Primary ConsiderationsPLASTICITY
•Internet is always changing•The information on internet
can be changed•Latest developments can be
passed on to the customers
PLASTICITY
•Internet is always changing•The information on internet
can be changed•Latest developments can be
passed on to the customers
PARTICIPATION
•Internet marketing requires active participation of the
target audience• The marketers are
dependent on the customer
PARTICIPATION
•Internet marketing requires active participation of the
target audience• The marketers are
dependent on the customer
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Electronic Marketing ChannelElectronic Marketing Channel
The NewThe NewBusinessBusinessMultiplierMultiplier
Find out about productsFind out about products
Get answers to questionsGet answers to questions
Leave messagesLeave messages
Solve problemsSolve problems
Make purchasesMake purchases
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Internet Marketing StrategyInternet Marketing Strategy
Push StrategyPush StrategyTelevision, Radio, Print
Pull StrategyPull StrategyInternet
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Internet Marketing PlanInternet Marketing Plan
Analysis of InternetMarketing Environment
Analysis of InternetMarketing Environment
Statement of Company’sOn-Line Business StrategyStatement of Company’s
On-Line Business Strategy
Specific Internet MarketingObjectives and Strategies
Specific Internet MarketingObjectives and Strategies
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Internet Marketing ObjectivesInternet Marketing Objectives
InternetInternetMarketingMarketingObjectivesObjectives
InternetInternetMarketingMarketingObjectivesObjectives
Sales LevelSales Level
Repeat PurchaseRepeat Purchase
Market PositioningMarket Positioning
ImageImage
Brand AwarenessBrand Awareness
On-Line Market ShareOn-Line Market Share
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Factors in Internet Factors in Internet Marketing ProgramsMarketing Programs
FactorsFactorsinin
InternetInternetMarketingMarketing
Degree of programsophistication
Program Magnitude
Program Dynamics
Prior Internet marketing experience
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Marketing ResearchMarketing Researchthrough the Webthrough the Web
The WebThe Webin in MarketingMarketingResearchResearch
The WebThe Webin in MarketingMarketingResearchResearch
Vast information sources for secondary research
Vast information sources for secondary research
Better primary researchBetter primary research
Web-based surveys andfocus groups
Web-based surveys andfocus groups
Information about competitors
Information about competitors
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Internet Demographics and TrendsInternet Demographics and Trends
FactorsFactorsInfluencingInfluencing
On-LineOn-LineBuying Buying
Behavior Behavior
FactorsFactorsInfluencingInfluencing
On-LineOn-LineBuying Buying
Behavior Behavior
Attitude toward technology
Income
Motivation to useTechnology
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InternetInternetBuyer Buyer
Categories Categories
InternetInternetBuyer Buyer
Categories Categories
Early Adopters
“Mainstreamers”
Laggards
Internet Demographics and TrendsInternet Demographics and Trends
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On-Line PositioningOn-Line Positioning
Identify the most important target market
Identify that market’s on-line need
Determine how the company’s Internet presence meets that need
Identify how the on-line presence is better than the competition.
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Product Strategies on the Product Strategies on the WebWeb
Personalized Service
Personalized Service
BrandingBranding
Virtual On-Line Product Trials
Virtual On-Line Product Trials
Ways to OvercomeWays to OvercomeLack of Lack of
Product ContactProduct Contact
Ways to OvercomeWays to OvercomeLack of Lack of
Product ContactProduct Contact
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Customer Relationship MarketingCustomer Relationship Marketingon the Interneton the Internet
OpportunitiesOpportunitiesforfor
Customer Customer RelationshipRelationship
MarketingMarketing
OpportunitiesOpportunitiesforfor
Customer Customer RelationshipRelationship
MarketingMarketing
Profiles of preferencesProfiles of preferences
E-mail notificationsE-mail notifications
Customer serviceCustomer service
Convenient on-line shopping
Convenient on-line shopping
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On-Line PromotionOn-Line Promotion
Banner AdvertisementsBanner Advertisements
Button AdvertisementsButton Advertisements
Interstitial AdvertisementsInterstitial Advertisements
Untargeted E-Mail MarketingUntargeted E-Mail Marketing
Targeted E-Mail MarketingTargeted E-Mail Marketing
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The Virtual CommunityThe Virtual Community
Bulletin BoardsBulletin Boards
Chat RoomsChat Rooms
NewslettersNewsletters
Discussion ListsDiscussion Lists
Types ofTypes ofVirtualVirtual
CommunitiesCommunities
Types ofTypes ofVirtualVirtual
CommunitiesCommunities
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Examples of Internet StrategiesExamples of Internet Strategies
Increase or enhance exposureIncrease or enhance exposure
Improve customer serviceImprove customer service
Provide new products/servicesProvide new products/services
Add value to existing products/servicesAdd value to existing products/services
Lower overall company costsLower overall company costs
Create one-to-one customer relationshipsCreate one-to-one customer relationships
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Advantages ofAdvantages ofElectronic PublicationsElectronic Publications
Information content that is more currentInformation content that is more current
The ability to make complex searchesThe ability to make complex searches
Easier access to worldwide informationEasier access to worldwide information
Incorporation of multi-mediaIncorporation of multi-media
Lower publication costsLower publication costs
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Uses of Interactive Web SitesUses of Interactive Web Sites
Execute TransactionsExecute Transactions
Deliver Electronic Products and Services
Deliver Electronic Products and Services
Collect Demographic and Behaviouristic Customer Data
Collect Demographic and Behaviouristic Customer Data
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Internet Direct SellingInternet Direct Selling
AdvantagesAdvantagesAdvantagesAdvantages
Eliminate distribution network complexity
Increase customer traction at low costs of contact
DisadvantagesDisadvantagesDisadvantagesDisadvantages
Need to manage all channel activities
Hit rates may be low
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E-TailingE-Tailing
Retailing on the Web
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Internet Shopping vs. Internet Shopping vs. Store ShoppingStore 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
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Evaluating the OutcomeEvaluating the Outcome
HitsHits
CapturingWeb
Statistics
CapturingWeb
Statistics
Page ViewPage View
Site RegistrationSite Registration
Cookie TechnologyCookie Technology
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FINANCIALFINANCIALS of S of
NeTTINGNeTTING
FINANCIALFINANCIALS of S of
NeTTINGNeTTING
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FinancialsFinancials
0123456789
ENTRY LEVEL MEDIUMCOMPLEXITY
COMPLEX &COMPREHENSIVE
Technology level
Co
st i
n L
ak
hs
COST
50005000 1,00,0001,00,000
8,00,0008,00,000
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Financial ImplicationsFinancial Implications
Competitive advantage Competitive advantage
Reduction in expensesReduction in expenses
Reduced inventoryReduced inventory
Lower financialbarriers to entry
Lower financialbarriers to entry
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THANK YOUTHANK YOUTHANK YOUTHANK YOU
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