Welcome to Internet Marketing! “The journey is the reward” BUSIP Program – 31 May 05 Fred Pursell

Do you know your Internet marketing trivia? What is the meaning of ‘I18N?’

Do you know your global marketing trivia? What share of the world’s population has English as its native language?

Top 10 spoken languages LanguageNative SpeakersPopulation Share Mandarin Chinese885 m14.9% English322 m5.4 % Spanish266 m4.5% Bengali189 m3.2% Hindi182 m3.1% Portuguese170 m2.9% Russian170 m2.9% Japanese125 m2.1% German98 m1.6% Wu Chinese77 m1.3% Source: National Geographic

Internet marketing learning objectives Explore how the Web is being used to build brands and customer relationships. Examine online promotional strategies and tactics, what’s working and why or why not. Evaluate ways to integrate Internet marketing with traditional marketing vehicles.

Marketing planning is critical to success By failing to plan, you’re planning to fail.

The customer is king Marketing is all about understanding the customer.

Content is king? Customer-focused Web content is useful, timely, and relevant – as defined by the user.

User-centric Web design is king The promise of the Internet is user control.

Topics for today’s class Revisiting the 4P’s of marketing; trends and lessons in B2C and B2B e-commerce Incorporating Web-based resources in hybrid and multi-channel marketing systems Promotional strategies and tactics, and best practices for Internet marketing Amazon.com case study discussion

Four P’s of marketing 1) Product 2) Promotion 3) Place 4) Pricing

INFORMATIONEVALUATIONPURCHASEDELIVERYSUPPORTDEMANDPRE-SALESSALESDELIVERYSUPPORT Customer View Vendor View Typical sales cycle phases

Market development and customer support

Managing hybrid marketing systems Hybrid marketing = using the most effective combination of internal and external resources to perform activities across the sales cycle. Harvard Business Review Nov-Dec, 1990

Resources engaged in promotional activities Internal Resources Marcoms PR Advertising Programs Direct Mail Groups Telesales Direct Sales Web presence Support Centers Financing Consultants System Engineers External Resources Distributors VARs Systems Integrators Corporate Resellers Dealers Retailers Mass Merchants Service Providers ISVs OEMs

Promotional vehicles Advertising Personal selling Public relations Sales promotion Direct marketing Trade shows

Promotional mix strategies Pull Strategy = spending focused on advertising and consumer spending to build up and pull consumer demand. Push Strategy = spending focused on using the sales force and trade promotion to push the product through the channels.

INFOEVALPURCHASEDELIVERYSUPPORT Public Relations Advertising Direct Mail Telesales Direct Sales Internet Distributors VARs/Integrators Dealers Retail ISVs OEMs Support Centers Hybrid marketing example

Internet promotional tactics Online advertising techniques; banner ads, pop- ups, animation, rich media, content e-marketing programs; , e-newsletters, Webcasts, communities, search engines e-partnering programs; strategies and tactics for leveraging online business partners Integrating online promotional techniques with traditional marketing activities

Managing promotion PlanningImplementationControl Identify target audience Specify objectives Define performance metrics Establish the budget Select promotional tactics Design promotion Schedule promotion Pre-test promotion Execute promotion Audit effectiveness Measure results Evaluate ROI Post-test the promotion Make needed changes Manage processes Communicate results

Determinants – promotional mix strategy/tactics Target audience Product life cycle Product characteristics Phase of the sales cycle Channel strategy

Forward integration to the customer Disintermediation = a trend involving product and service producers by-passing intermediaries and going directly to final buyers, or engaging with new and emerging types of channel intermediaries that are displacing traditional players.

Why people use the Internet ObjectivesBenefitsValue ContentConvenienceInformation CollaborationEase of useResources CommerceEfficiencyTools Web-user Needs

How people use the Internet Task-focused product searches Enrichment-based learning searches commercecontent community Interaction-directed resource searches LIFESTYLE Web-user Behavior

Keys to online marketing Permission-based marketing Personalization Purchasing process automation User-centered design Value-added content Affinity programs Web metrics Integrated marketing communications

Amazon case study discussion 1) How is Amazon using technology to innovate and deliver new value to consumers? 2) What can you conclude about Amazon’s target audience and market segmentation? 3) What sales processes are automated through online information, resources, and tools?

It’s great having you in my class. Thank you everyone!