Marketers and the Internet 1. Who is in the environment? 2. What are the effects of the Internet? 3. How do marketers respond?

A General Overview Constraints and opportunities Need to understand what consumers are doing –To develop “products” that meet needs –To leverage their interactions (even with third parties) to meet marketing objectives Focus on relationships Implications for marketing action

Describing Marketers Who are the.com’s? Other companies with Internet use… –Online marketing Selling –Online transaction and delivery –Online transaction and offline delivery –Online referral for offline transaction Other marketing purposes –Online e-commerce-but-not-really-what-we-would- call-marketing processes

Thriving in the Internet Environment Effects on business structures –Decentralized processes –Less hierarchical structure Effects on business performance/processes –Doing more, faster and better (in theory) “Internet time” Increased information and communications –Greater process transparency To consumers To competition

Environmental Factors and Marketing Adaptivity: 5 C’s Company –e.g., Shifts in structure and in function responsibility Channels –e.g., Shifts in structure and in relational power Customers –e.g., Shifts in attitude and in behavior Competition –e.g., Shifts in structure (alliances) Conditions –e.g., Shifts in regulation and capability

Q.: Why Market in the Online Environment? A1: Because it’s where consumers are. –(Somebody has to provide the goods and services) A2: Because it’s where the money is? –(Perhaps, for some things…) A3: Because nobody likes to be left out. –(The bandwagon moves quickly) A4: Because nobody else is there. –(An empty niche is hard to find.) A5: Because it’s not too hard to get in. –(Low correlation with success!)

Leveraging Resource Acquisition New opportunities to meet strategic objectives –E.g., Revenue, branding, loyalty –Actions based consumers’ resource goals –Company/product and resource need should be related –Opportunities constitute implicit business models Resource by resource… –Money (from consumers point of view!) Piggy-backing on need for money (surf for cash) Global markets (growing markets, same segments) New markets (new segments, different needs)

More Leveraging, by Resource Information –Revenue (pushed content, channels) –Branding (through sponsorship) –Loyalty (consistency across contexts ) Goods –Revenue (new opportunities, new customers) –Branding (increased exposure, range) –Loyalty (increased performance/follow-up)

Leveraging Services and Status Services –Revenue (for fee, for free and sell exposure) –Branding (cutting-edge image, added benefit) –Loyalty (one-stop shopping, 24/7) Status –Revenue (luxury goods, wider market) –Branding (exclusivity, scarcity) –Loyalty (strategic alliances to narrow target)

Leveraging Love Internet resources as an end/source –Revenue (diamonds, flowers, etc.) –Branding (wedding registry service) –Loyalty (anniversary reminders) Internet resources as means to an end –Revenue (fee for astrology online: information) –Branding (promotion on related area: dating service) –Loyalty (target commitment-focused segment)