1. Internet Marketing Concepts
Week 2

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

3. 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

4. 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

5. Communication Using the Internet
Content M
Content
Content
Internet Medium C2 M M M M
Content O O C3 O

6. 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)

7. 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 (

8. 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 (

9. 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

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

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

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

13. 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

14. 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