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

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 . 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. 14-2

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

Advertising Sales support Customer service Public relations E-commerce (Retail store) 14-4 F I G U R E Marketing Functions on the Internet

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$ Average online sales per month (in millions of dollars). Source: “Holiday Spending Numbers Come in Below Projections” (

E-Commerce Components Catalog Shopping cart Payment procedure

E-Commerce Incentives Must overcome security issues. Must change purchase behavior habits. – Financial incentive Cyberbait – Convenience-based incentive – Value-added incentive 14-7

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 14-8

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. 14-9

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?

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

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

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 14-13

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

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

14-16 A Web site with clear navigation. Click image to go to site.