©2003 South-Western Chapter 15 Version 3e1 chapter Internet Marketing 15 Prepared by Deborah Baker Texas Christian University

©2003 South-Western Chapter 15 Version 3e2 chapter Learning Objectives 19 1.Describe the impact of the Internet on business practices. 2. Describe the current Internet marketing environment. 3. Discuss online business strategies. 4. Discuss Internet marketing objectives and strategies.

©2003 South-Western Chapter 15 Version 3e3 Learning Objective 1 1 Describe the impact of the Internet on business practices.

©2003 South-Western Chapter 15 Version 3e4 Electronic Marketing Channel The New BusinessFranchise Find out about products Get answers to questions Leave messages Solve problems Make purchases 1 1

©2003 South-Western Chapter 15 Version 3e5 Customer Relationship Marketing on the Internet 1 1Opportunitiesfor Customer Relationship MarketingOpportunitiesfor Marketing Profiles of preferences notifications Customer service Convenient online shopping

©2003 South-Western Chapter 15 Version 3e6 Financial Implications Competitive advantage Reduction in expenses Reduced inventory Lower financial barriers to entry Lower financial barriers to entry 1 1

©2003 South-Western Chapter 15 Version 3e7 Marketing Research through the Web 1 1 The Web inMarketingResearch inMarketingResearch Vast information sources for secondary research Vast information sources for secondary research Better primary research Web-based surveys and focus groups Web-based surveys and focus groups Information about competitors

©2003 South-Western Chapter 15 Version 3e8 Advantages of Electronic Publications 1 1 Information content that is more current The ability to make complex searches Easier access to worldwide information Incorporation of multi-media Lower publication costs

©2003 South-Western Chapter 15 Version 3e9 Internet Marketing Plan 1 1 Analysis of Internet Marketing Environment Analysis of Internet Marketing Environment Statement of Companys online Business Strategy Statement of Companys online Business Strategy Specific Internet Marketing Objectives and Strategies Specific Internet Marketing Objectives and Strategies

©2003 South-Western Chapter 15 Version 3e10 Learning Objective 2 2 Describe the current Internet marketing environment.

©2003 South-Western Chapter 15 Version 3e11 Basic Forms of Virtual Business 2 2 Business-to-Consumer (B2C) Business-to-Consumer (B2C) Basic Forms of Electronic Commerce Basic Forms of Electronic Commerce Business-to-Business (B2B) Business-to-Business (B2B)

©2003 South-Western Chapter 15 Version 3e12 Internet Demographics and Trends 2 2 FactorsInfluencingOnline Buying Behavior FactorsInfluencingOnline Attitude toward technology Income Motivation to use Technology

©2003 South-Western Chapter 15 Version 3e13 Internet Buyer Categories Internet Early Adopters Mainstreamers Laggards Internet Demographics and Trends 2 2

©2003 South-Western Chapter 15 Version 3e Internet Demographics and Trends Push Strategy Television, Radio, Print Pull Strategy Internet

©2003 South-Western Chapter 15 Version 3e15 The Virtual Community 2 2 Bulletin Boards Chat Rooms Newsletters Discussion Lists Types of VirtualCommunities VirtualCommunities

©2003 South-Western Chapter 15 Version 3e16 Internets Influence on The Global Village 2 2 Broadens and enhances access in developing nations Broadens and enhances access in developing nations Allows businesses to leapfrog into development Allows businesses to leapfrog into development Levels playing field for disadvantaged countries Levels playing field for disadvantaged countries

©2003 South-Western Chapter 15 Version 3e17 The Digital World Value Speed Global Marketing Implications 2 2

©2003 South-Western Chapter 15 Version 3e18 Learning Objective 3 3 Discuss online business strategies.

©2003 South-Western Chapter 15 Version 3e19 Strategies for Web Success To Survive and Prosper... Sell at a fair price Use promotion Make products readily available Offer customer-driven products 3 3

©2003 South-Western Chapter 15 Version 3e20 Examples of Internet Strategies 3 3 Increase or enhance exposure Improve customer service Provide new products/services Add value to existing products/services Lower overall company costs Create one-to-one customer relationships

©2003 South-Western Chapter 15 Version 3e21 Online Positioning 3 3 Identify the most important target market Identify that markets online need Determine how the companys Internet presence meets that need Identify how the online presence is better than the competition.

©2003 South-Western Chapter 15 Version 3e22 Factors in Internet Marketing Programs 3 3 FactorsinInternetMarketing Degree of program sophistication Program Magnitude Program Dynamics Prior Internet marketing experience

©2003 South-Western Chapter 15 Version 3e23 The Internet Presence 3 3 InternetMarketingTechniquesInternetMarketingTechniques Corporate Web Site Interactive Web Site

©2003 South-Western Chapter 15 Version 3e24 Uses of Interactive Web Sites 3 3 Execute Transactions Deliver Electronic Products and Services Collect Demographic and Behavioristic Customer Data Welcome to my Web Site. You are Visitor Number 495,251

©2003 South-Western Chapter 15 Version 3e25 Internet Direct Selling AdvantagesAdvantages Eliminate distribution network complexity Increase customer contact DisadvantagesDisadvantages Need to manage all channel activities 3 3

©2003 South-Western Chapter 15 Version 3e26 E-Tailing Retailing on the Web 3 3

©2003 South-Western Chapter 15 Version 3e27 Internet Shopping vs. Store Shopping 3 3 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

©2003 South-Western Chapter 15 Version 3e28 Learning Objective Discuss Internet marketing objectives and strategies. 4 4

©2003 South-Western Chapter 15 Version 3e29 Key Success Factor for Internet Businesses 4 4

©2003 South-Western Chapter 15 Version 3e30 Internet Marketing Objectives 4 4 InternetMarketingObjectivesInternetMarketingObjectives Sales Level Repeat Purchase Market Positioning Image Brand Awareness Online Market Share

©2003 South-Western Chapter 15 Version 3e31 Product Strategies on the Web Personalized Service Branding Virtual online Product Trials Ways to Overcome Lack of Product Contact Ways to Overcome Lack of Product Contact 4 4

©2003 South-Western Chapter 15 Version 3e32 Online Promotion 4 4 Banner Advertisements Button Advertisements Interstitial Advertisements Untargeted Marketing Targeted Marketing

©2003 South-Western Chapter 15 Version 3e Charging different prices for different channels can be effective if: Pricing on the Internet Channel use behavior is an effective means to segment the market There is a benefit to encourage use of one channel rather than the other

©2003 South-Western Chapter 15 Version 3e34 Evaluating the Outcome 4 4 Hits Capturing Web Statistics Capturing Web Statistics Page View Site Registration Cookie Technology