14-1 Internet Marketing Profile of Internet users. Marketing functions on the Internet. E-commerce. Internet design issues. 14 Chapter Overview

14-2 Internet Purchases What was the last purchase you made using the Internet? What percentage of your purchases are made via the Internet? What products do you purchase over the Internet? What do you think is the future for Internet dot.com firms? What obstacles do dot.com firms face? Discussion Slide Fogdog: 14

14-3 Some Internet Facts 41% of Americans have access to the Internet. Over 4 million Web sites. 200 million addresses. 7 trillion s are sent each year. Nearly 50% of U.S. population communicates via e- mail. The average er receives 31 s a day. 25% of all B-to-B purchases are placed via the Internet. B-to-B e-commerce in the U.S. totals $1.3 trillion. 21% of Internet users are preteens and teens, 35% are college age and 35% are of Generation X.

14-4 INTEGRATED LEARNING EXPERIENCE STOP Internet Usage Statistics Access CyberAtlas to see the latest statistics about Internet usage. Access each of the following areas. Stats Toolbox Demographics Geographics Traffic patterns

14-5 Building databases for campaigns. Designing campaigns linking customers to Web site information. Creating fun and innovative games to attract and keep customers coming back to a Web page. Creating incentive programs. Translating printed documents, catalogs, brochures and newsletters for the Internet. Adding graphics to the Web site. Source: Ellisor, “Business-to-Business Offer WWW Opportunities,” Houston Business Journal, (September 17, 1999), Vol. 30, No. 7, p. 18B. F I G U R E Internet Services Offered by Marketing Companies

14-6 Advertising Sales support Customer service Public relations E-commerce (Retail store) F I G U R E Marketing Functions on the Internet

14-7 Compuserve

Many Internet lottery and gaming sites offer users a chance to win money without outright risk. How do these business make money?

14-9 E-Commerce Online Sales Travel reservations$2,551 Computer hardware/peripherals$1,216 Apparel$1,144 Auctions$ 937 Toys$ 839 Consumer Electronics$ 810 Books$ 774 Financial services$ 539 Music$ 443 Average online sales per month (in millions of dollars). Source: “Holiday Spending Numbers Come in Below Projections” (

14-10 E-Commerce Components Catalog Shopping cart Payment procedure

14-11 E-Commerce Incentives Must overcome security issues. Must change purchase behavior habits. Financial incentive Cyberbait Convenience-based incentive Value-added incentive

14-12 Business-to-Business E-Commerce Excellent for re-buy situations. Brand name recognition important Requires incentives Financial Convenience Value-added Online exchanges and auctions Store or warehouse locator

14-13 INTEGRATED LEARNING EXPERIENCE STOP B-to-B Auction Sites Business Finder Paper Exchange E-Steel

14-14 International E-Commerce Internet allows for sales worldwide. Areas to address for international business. Communication barriers Cultural differences Shipping of merchandise Internet capabilities in other countries Payment procedures Web sites in different languages. Call centers in different countries.

14-15 Internet content search (38%) Word-of-mouth (30%) Internet banner (20%) Television ad (7%) Print ad (5%) Source: Don Jeffrey, “Survey Details Consumer Shopping Trends on the Net,” Billboard, (May 29, 1999), Vol. 111, No. 22, p. 47. F I G U R E What drives people to a new site?

14-16 Putting the Web address on printed materials and promotional items. (91%) Advertising in trade journals. (74%) Registering the Web site with search engines for key words. (72%) Buying banners on other sites. (25%) F I G U R E B2B Techniques to Boost Site Awareness

14-17 This Juno ad was placed in trade magazines to increase business awareness. It alludes to the difficulty of proper targeting.

14-18 This Buzzsaw.com advertisement was placed in trade magazines for the construction industry. The company promises to help business evolve and survive as the industry undergoes rapid change.

14-19 Interfacing the Internet and the IMC Plan Branding Web site must support brand image Cyberbranding Brand spiraling Halo brand effect Brand loyalty Easier to communicate with loyal customers. Ability to establish one-on-one communication.

14-20 Interfacing the Internet and the IMC Plan (continued) Sales support Provide information to sales staff about products and clients. Quality customer prospects. Provides information for sales call Provides history of client. Customer service Reduce cost and provides convenience FAQs questions Access buyer’s database for product and service information. Consumer promotions

14-21 Clueless banners. Slow loading front page. Forcing people to go through numerous screens. Too much verbal information. Too many technical terms. Hard to navigate. F I G U R E Clues to Poor Web Design

14-22 Decide strategic purpose. Easy access and quick loading. Written content should be precise. Content is key Graphics should support content Make an offer to encourage a response. Provide easy to use navigation links on every page. Use gimmicks to gain attention at the beginning. Change Web site on a regular basis. Measure results continually. Source: Based on Ray Jutkins, “13 Ideas That Could Lead to Successful Web Marketing,” Advertising Age’s Business Marketing, (June 1999), Vol. 84, No. 6, p. 27. F I G U R E Tips for Creating Winning Web sites

14-23 A Web site with clear navigation. Click image to go to site.

14-24 Examine the role of the Internet in your IMC plan. Integrate your Web site with your other marketing programs. Will you have multiple Web sites for your different constituencies? Develop the opening page of your Web site. Building Your IMC Campaign