Internet MarketingInternet Marketing

What is Marketing?What is Marketing?

The strategies and actions firms The strategies and actions firms take to establish a relationship with take to establish a relationship with a consumer and encourage a consumer and encourage purchases of its products or servicespurchases of its products or services– BrandBrand– BrandingBranding– Brand StrategyBrand Strategy– Brand EquityBrand Equity

The Online Consumer The Online Consumer ProfileProfile

2001: 60% of the US online2001: 60% of the US online 2005: 75% of US predicted to be 2005: 75% of US predicted to be

onlineonline Intensity: Although internet Intensity: Although internet

population is growing rather slowly, population is growing rather slowly, existing users are spending more existing users are spending more time online.time online.

Scope: 7.2Scope: 7.2

DemographicsDemographics

EthnicityEthnicity EducationEducation GenderGender IncomeIncome AgeAge See Table 7.3See Table 7.3

Market ResearchMarket Research

How can you predict consumer How can you predict consumer behavior?behavior?– DemographicsDemographics– PsychographicsPsychographics– CultureCulture– Reference GroupsReference Groups– Opinion LeadersOpinion Leaders

Psychology of PurchasingPsychology of Purchasing

1. Awareness of need1. Awareness of need 2. Search for more information2. Search for more information 3. Evaluation of alternatives3. Evaluation of alternatives 4. Purchase Decision4. Purchase Decision 5. Post Purchase Contact5. Post Purchase Contact

Online vs. Offline Online vs. Offline Consumer Behavior?Consumer Behavior?

Decision making behavior close to Decision making behavior close to the samethe same

However, there are two variables However, there are two variables added to a traditional marketing added to a traditional marketing model.model.– Web site capabilitiesWeb site capabilities– Consumer Clickstream Behavior (7.4)Consumer Clickstream Behavior (7.4)

Online Shopping Online Shopping ImplicationsImplications

80% of Internet Users Shop Online80% of Internet Users Shop Online– 40% Browsers40% Browsers– 40% Buyers40% Buyers– Significance?Significance?– What do consumers buy on the Web? What do consumers buy on the Web?

7.77.7– How do shoppers find vendors online? How do shoppers find vendors online?

7.87.8– Why don’t people shop online?Why don’t people shop online?

Segmenting, Targeting & Segmenting, Targeting & PositioningPositioning

Internet Marketing Internet Marketing TechnologiesTechnologies

Web Transaction Logs (p363)Web Transaction Logs (p363)– What can you learn from them?What can you learn from them?– Cookies!Cookies!– Web Bugs!Web Bugs!

Advertising NetworkAdvertising Network

p374p374

Market Entry StrategiesMarket Entry Strategies

First MoverFirst Mover Fast FollowerFast Follower AlliancesAlliances Brand ExtenderBrand Extender

Establishing Customer Establishing Customer RelationshipsRelationships

Permission MarketingPermission Marketing Affiliate MarketingAffiliate Marketing Viral MarketingViral Marketing Brand LeveragingBrand Leveraging

Customer RetentionCustomer Retention

PersonalizationPersonalization CustomizationCustomization Transactive ContentTransactive Content Customer ServiceCustomer Service

Net Pricing StrategiesNet Pricing Strategies

It’s FreeIt’s Free VersioningVersioning BundlingBundling Dynamic PricingDynamic Pricing

Online Marketing Online Marketing CommunicationsCommunications

AdvertisingAdvertising– Banner and Rich Media AdsBanner and Rich Media Ads– Paid Search Engine Inclusion and Paid Search Engine Inclusion and

PlacementPlacement– SponsorshipsSponsorships– Affiliate RelationshipsAffiliate Relationships

Online CatalogsOnline Catalogs Public RelationsPublic Relations Direct E-mail MarketingDirect E-mail Marketing

– SpamSpam

LEXICONLEXICON