1. Internet Marketing

2. What Is Marketing? An activity in which firms gather information about their customers –To uncover present customer needs and anticipate future ones –To use the information to develop strategies to satisfy these needs at a profit It is the enterprise-wide generation of market intelligence pertaining to current and future customer needs –Success in marketing depends on the responsiveness of the firm to this information

3. Marketing Traditional marketing Market segmentation Direct marketing Relationship marketing One-to-one marketing

4. Traditional Marketing The traditional marketing model for mass media assumes a broadcast model –Communication with the marketplace is “one–to–many” –A firm transmits content through a medium to a large group of consumers –This content must be carefully homogenized A key assumption of this models is that there is no direct interaction between consumers and firms –The communication is typically brief and one way

5. Market Segmentation Target marketing A marketing technique that targets a group of customers with specific characteristics Segmentation is the process of directing all marketing efforts at a particular group of potential customers( by Mississippi University State Extension Service) –For example, Rolex directs the marketing of its watches to upscale customers who are very brand conscious

6. Consumer Purchase Decision Process –Prepurchase steps Awareness of need for purchase Identify basic need or want –Actual purchase Establish decision criteria Seek recommendations and information Make purchase –Postpurchase steps Assistance with installation or setup Online help desks and instruction manuals

8. EC Consumer Behavior Model The purchasing decision process is triggered by a consumer’s reaction to stimuli The process is then influenced by the buyer’s characteristics, the environment, the technology, the EC logistics and other factors

10. Consumer Types Individual consumers –Commands most of the media ’ s attention Organizational buyers –Governments and public organizations –Private corporations –Resellers

11. Purchasing types and experiences 2 dimensions of shopping experiences –Utilitarian — to achieve a goal –Hedonic — because it ’ s fun 3 categories of consumers Impulsive buyers — purchase quickly Patient buyers — make some comparisons first Analytical buyers — do substantial research before buying

12. Roles people play in decision- making Initiator –Suggest/think of buying a particular product or service Influencer –Advice/view carry weight in making a final buying decision Decider –Make a buying decision or any part of it Buyer –Make the actual purchase User –Consume or use a product or service

13. Purchasing decision-making Model Need identification –Actual and desired states of need Information search Alternatives evaluation –Research reduces number of alternatives, may lead to negotiation Purchase and delivery –Arrange payment, delivery, warranties, etc. After-purchase evaluation –Customer service

15. One-to-one Marketing Relationship marketing –“ Overt attempt of exchange partners to build a long term association, characterized by purposeful cooperation and mutual dependence on the development of social, as well as structural, bonds ” –“ Treat different customers differently ” No two customers are alike

17. Essence of One-to-one Marketing Customer loyalty Customer trust in EC Personalization Customer relationship management

18. Customer Loyalty Customer loyalty –Degree to which customer stays with vendor or brand –Important element in consumer purchasing behavior –One of the most significant contributors to profitability Increase profits Strengthen market position Become less sensitive to price competition Increase cross-selling success Save costs, etc.

19. Customer Loyalty (Cont.) Meeting customers cognitive needs — organize customer service to meet needs of each skill set –Novice –Intermediate –Expert E-loyalty — customer ’ s loyalty to an e-tailer –Learn about customers ’ needs –Interact with customers –Provide customer service

20. Customer Trust in EC Trust in EC –Deterrence-based trust — threat of punishment –Knowledge-based trust — grounded in knowledge about trading partners –Identification-based trust — empathy and common values between partners Value of EC referrals –Word-of-mouth –Delivery of good or service sparks other users

22. Personalization Process of matching content, services, or products to individuals ’ preferences Alternative methods –Solicit information from users –Use cookies to observe online behavior –Use data or Web mining Personalization applied through –Rule-based filtering –Content-based filtering –Constraint-based filtering –Learning-agent technology

23. Personalization (cont.) Collaborative filtering examples –Backfilp.com — recommends restaurants –C5solutions.com — personalized messages via cell phones –Mysimon.com — assists in purchase decision- making process based on user information Legal and ethical issues –Privacy issues –Permission-based personalization tools