Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter chapter 19 Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University INTERNET MARKETING

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter You Will... 1.Have a basic understanding of the origins of the Internet, e-commerce and e-business. 2. Be familiar with the characteristics and demographic composition of the global population of Internet users. 3. Appreciate the need for timely, accurate information in the new economy.

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter You will … 4. Understand the impact of Internet technologies on the market planning process. 5. Be able to ask the questions necessary to develop a comprehensive marketing strategy that mixes traditional and new economy methods.

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter The Birth of the Internet  Internet was used for the first time in  It began to expand in 1991 with the World Wide Web.  Internet technologies pose managerial implications to business.  Students must learn how technology affects business operations.

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter The Role of the Internet in Marketing  The fastest growing communications technology.  Within the first five years, 50 million people were connected.  As of November 2000 there were million Internet users worldwide.  Capable of interactively sharing information in real time.

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter A New Tool Pureplay An organization or enterprise operating strictly in an on-line environment Bricks and Clicks An enterprise that integrates both a physical and a Web presence.

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Electronic Tools.. Cookies Computer codes that enter users’ hard drives and act as identifiers so that organizations can present repeat visitors with customized sites. Data Mining A technique used by researchers to search for patterns in data sets that will provide insight into consumer behaviour.

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter New Tool to Reach Consumer Internet Postal Service Television Telephone Radio

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Internet Demographics and Trends Push Strategy Television, Radio, Print Pull Strategy Internet

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Decision Variables of the Marketing Mix Decision Variables of the Marketing Mix DecisionVariables Organizations moving away from standardized, mass distributed products Customer Service and Relationship building Using technology to provide consumers with “virtual” trial products Pricing Strategies

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Basic Forms of Virtual Business 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)

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter The Internet Presence Engage in interactive, personalized communications Web Sites On-line Banner Ads On-line Banner Ads Virtual storefronts and inventory systems Easy access to delivery info Easy access to delivery info Lower storage costs Lower storage costs Reduces Inventory Reduces Inventory

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Internet Demographics and Trends FactorsInfluencingOn-Line Buying Behaviour FactorsInfluencingOn-Line Attitude toward technology Income Motivation to use Technology

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Internet Buyer Categories Internet Early Adopters “Mainstreamers” Laggards Internet Demographics and Trends

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Consumer Characteristics

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Consumer Characteristics by Age Group

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter E-Commerce Facts Cars/Car parts ComputersClothingBooksCDs/Video Top On-line Shopping Categories BooksCDs/VideosComputersClothingSoftware Top On-line Purchasing Categories

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Connectivity  Increasing connectivity worldwide.  Users are becoming more homogeneous.  Governments are introducing legislation to restrict how personal information is used.

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Research Secondary Research Secondary Research Research based on existing data or information Primary Research Research conducted for a specific purpose at the time it is needed

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Internet and On-line Research 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

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Advantages of Electronic Publications Information content that is more current The ability to make complex searches Easier access to worldwide information Incorporation of multi-media Lower publication costs

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter The Virtual Community Bulletin Boards Chat Rooms Newsletters Discussion Lists Types of VirtualCommunities VirtualCommunities

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Internet’s Influence on The Global Village 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

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter The Digital World Value Speed Global Marketing Implications

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Strategies for Web Success 1. Offer Customer Driven Products 1. Offer Customer Driven Products 2. Define the Product 3. Set the Price 4. Distribute the goods

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Examples of Internet Strategies 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

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Planning On-Line Positioning  Identify the most important target market  Identify that market’s on-line need  Determine how the company’s Internet presence meets that need  Identify how the on-line presence is better than the competition.

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Factors in Internet Marketing Programs FactorsinInternetMarketing Degree of program sophistication Program Magnitude Program Dynamics Prior Internet marketing experience

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Uses of Interactive Web Sites Execute Transactions Deliver Electronic Products and Services Collect Demographic and Behaviouristic Customer Data Welcome to my Web Site. You are Visitor Number 495,251

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Key Success Factor for Internet Businesses

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Internet Marketing Objectives InternetMarketingObjectivesInternetMarketingObjectives Sales Level Repeat Purchase Market Positioning Image Brand Awareness On-Line Market Share

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter On-Line Promotion Banner Advertisements Button Advertisements Interstitial Advertisements Untargeted Marketing Targeted Marketing

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Charging different prices for different channels can be effective if: Pricing on the Internet  Channel use behaviour is an effective means to segment the market  There is a benefit to encourage use of one channel rather than the other

Copyright © 2002 by Nelson, a division of Thomson Canada Limited. Chapter Evaluating the Outcome Hits Capturing Web Statistics Capturing Web Statistics Page View Site Registration Cookie Technology