Internet Marketing Concepts Part 2

Objectives The new communication medium The Internet and the marketing mix Key elements of effective web site designs Internet marketing versus conventional marketing

The Internet as a New Communication Medium Digital, interactive, and a greater depth of information can be published Demographics may be different Culture of purchasers may be different Markets may be different

The Digital Medium of the Internet Predominantly a pull medium Enables interaction Potential for one-to-one or many-to-many communication The medium changes the nature of advertising Changes to the distribution channel and marketplace enabled by the digital media

Communication Using the Internet Internet Medium O C1C1 C5C5 O C4C4 C2C2 O O C3C3 O Content M M M M M M

The Communication Model N O I S E Source (web site) Message encoding Receiver (web browser) Message decoding Site content or Feedback (transaction log file)

Cultural Difference Uses of the Internet in the UK (1998) includes: –Sending (72 %) –Research (63%) –Education (58%) –Seeking information on products and services (53%) –Hobbies and interests (53%) –Games playing (32%) –Planning holidays (24%) Web reference: NOP Research Group (

In Europe and the USA Average age of user is 35.7 years old 38.5 % female and 61.5% male (22%, 72% Europe) 65% access the Web from home (29% Europe) Average household income $53,000 Web reference: KPMG ( GVU (

Cultural Difference Techno_lusters – focused in the culture and technology Academic buffs – originally on of the main types of users Techno-boffins – similar to the techno-lusters, but make more directed use of the technology for business Get aheads – use the Internet as a lifestyle accessory, use and Internet for product selection Hobbyists – people with specialist interests who use the Internet for purchase selection (golfers…) Knowledge traders – business oriented users who turn to the Internet for news services and information on best business practice Business bods – general business users in management roles Home users – members or families looking for education or purchases

Internet and Marketing Mix Product Quality Image Branding Features Variants Mix Support Customer service Use occasion Availability Warranties Using the Internet to vary the marketing mix Price Positioning List Discounts Credit Payment methods Free or value- added elements Promotion Marketing communica tions Personal promotion Sales promotion PR Branding Direct marketing Processes Customer focus Business- led IT- supported Design features Research and developme nt People Individuals on marketing activities Individuals on customer contact Recruitment Culture/ima ge Training and skills Remunera- tion Place Trade channels Sales support Channel number Segmented channels

The buying Process on the Internet Stages in buying process Communications objectives Internet marketing techniques 1. Unaware 2. Aware of product need, develop specification 3. Suppliers search 4. Evaluate and select 5. Purchase 6. Post-purchase evaluation and feedback Generate awareness Support use and retain business Lead generation (from range of customers) Assist purchase decision Facilitate purchase Position Features, benefits and brands Banner advertising, PR, links Web site content (Plus search support) Search engines, Intermediaries Web site content, Intermediaries Web site content Personalized web Site content and interaction

Key Elements of Effective Web Site Design Capture Content Community Commerce Customer orientation Credibility

Alternative Factors Attract users Engage users’ interest and participation Retain users and ensure that they return to the site Learn about customer preference Relate back to customers with customized interactions

Internet Marketing vs Conventional Marketing It is a many-to-many medium Consumers can interact with the medium Consumers can provide commercially oriented content to the medium