Internet Marketing Introduction

Parallels with the dawn and growth of TV 1936 – first TV broadcast TV’s impact on distance and time The Andrea Doria and Vietnam Affect on marketing National markets and brands – built on radio Consumer changes Consumers adopt lives to TV – Ed Sullivan and Johnny Carson New opportunities in TV - cable

Web Explosion Fascination and Functionality 1996 – Al Gore coins “Electronic Highway” Key tools missing – security, frames, multimedia Virtuous Web Cycle Popular fascination Internet access Web sites and content

Stages of Development Publishing sites Same information provided to all Example – Faculty of Management Databases and Forms Retrieve information based on user requests Beginnings of real marketing Example – Expedia.com Personalization Anticipates user requests and responds Least used – form long term relationshps Example – Northwest Airlines

Consumer-to-Consumer Chatrooms Allow consumers to quickly exchange info. Dangers to marketers Auction sites eBay from Pez dispensers to ??? “Buyer Beware” - Need for trust

Market Monitor eBay’s Rules Ratings of seller credibility Independent verification of buyer and seller identities Insurance against fraud Escrow accounts to prevent fraud Ban sellers bidding on own products Ban buyers that don’t complete sale

All Work and No Play Auction sites blur work and play Measure of success – duration of visit December 1998 eBay reports 27 minute average Activities Tracking auctions Chatting Checking out other possible bids Reading about collectibles

Business-to-Business Holds greater promise – why? Impacts all areas from product development to supplier networks Extranets Designed for key customers Contain special prices, configurations, dedicated support and others – CN Call Centre Intranets Order forms of preferred supplies Lowers cost of purchasing and concentrates sales – New Flyer

Marketing’s Evolution Mass Production – commodity products Ford Selling – product lines General Motors Brand Management – consumer needs P&G Customer Management Four Seasons

Internet Framework Marketing Elements Speed, customization and dialogue Technology Elements Networks, programming and computers Economics Affordability - making it an appliance Example - RealAudio