1. Chapter 10 Marketing on the Internet

2. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall2 OBJECTIVES Pros and Cons of Online Shopping Internet Marketing Techniques E-Cycle of Internet Marketing Marketing Your Presence Attracting Customers to Site Tracking Customers

3. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall3 ONLINE SHOPPING Pros Sorting through choices Vast product selection Quick comparison of products Cons Experimental information might be necessary –E.g. perfumes, clothes Delivery of products might be cumbersome –E.g. lumber

4. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall4 REASONS FOR GOING ONLINE Establish presence Serve your customers Heighten public awareness Share time-sensitive information Sell goods Answer important questions

5. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall5 REASONS FOR GOING ONLINE (Cont’d) Stay in touch with field personnel Market at international level Serve at local market Market specialized products Reach the youth market

6. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall6 INTERNET MARKETING TECHNIQUES PASSIVEAGGRESSIVE Pull to Push Continuum Providers of Information Site registered with many search engines Specialized services to users requesting information Specialized email to users requesting periodic information Offline Advertising Banner Advertising Targeted E-mails to Past Customers Spam Mail Chain Mail Advertising

7. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall7 FORMULA SNI = Consideration Gap X Site-to-Product Affinity Consideration Gap = Price/Purchase Frequency Intensity of pre-purchase deliberation Site-to-Product Affinity Sales viability + Research intensity + configurability + Service level Ability to deliver online experience correlated to the product/service

8. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall8 FORMULA (Cont’d) Whereby Price = How expensive the product compared with other household purchase? Purchase frequency = How often does the household purchase the product? Service level = How much customer service does the product need online? Research intensity = How research-intensive is the purchase decision? Configurability = How customizable is the product? Sale viability = How viable are online sales of the product?

9. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall9 E-CYCLE OF INTERNET MARKETING Planning Product Pricing Place Promotion

10. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall10 BUSINESS PLANNING Business Plan –Written document identifying your business goals and how you will achieve them –Elements Mission / Vision Product Competition Target audience Marketing Sales plan Operation Technology

11. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall11 PRODUCT & PRICING Product –Emphasize on viability, quality and integrity –Physical vs. Service Pricing –Frequent purchase plans –Online auctions

12. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall12 PLACE Exchange of information between businesses and delivery companies Ensure prompt delivery of physical goods to customers Related to fulfillment Internet –A delivery channel for digital products –Cheap, fast, effective –Possibility of tapping / theft of digital data

13. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall13 PROMOTION Get prospective visitors’ attention Create interests in a product Build a desire in the product Banners –Internet ads –Cheap and fit traditional ad-agency formula

14. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall14 PERSONALIZATION Combination of Promotion and Product For customers to receive personalized information “Artificial Intelligence” incorporated into Internet Marketing

15. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall15 MARKETING IMPLICATIONS Content Dynamic and Attractive Sites Brands Get to the Point Promotion Online Events Free Giveaways Consistency

16. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall16 PROMOTING YOUR SITE ON YOUR SITE Begins with domain name Encourage repeat site visits Update site content Share with your visitors any new awards Use promotional giveaways, contests, etc.

17. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall17 PROMOTING YOUR SITE ON THE WEB Search engines and directories Stand out from other sites Brainstorm keywords for robot search Ensure the site design is flawless before submitting to search engines

18. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall18 PROMOTING YOUR SITE ON THE INTERNET Use e-mails to contact registered customers Use news groups and mailing lists

19. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall19 ATTRACTING CUSTOMERS TO SITE Keeping site content current Offering free information or products Offer a free service as a way to entice customers online for B2B Implementing cross-selling strategy Ensuring easy and quick navigation Introducing event marketing Enlisting affiliates

20. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall20 ATTRACTING CUSTOMERS TO SITE (Cont’d) Cultural Differences –How to market to local customers Predicting Buying Behavior –Save time –Young, educated, and wealthier population

21. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall21 PERSONALIZATION Identification Determining buyers’ buying pattern Marketing attractive products How to add personalization –Keywords –Collaborative filtering –Rule-based

22. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall22 TRACKING CUSTOMERS Gathering Web data –Log files –Forms –Cookies Persistent vs. Session Clickstream data analysis Role of shopbot –Searches sites to compare prices

23. Chapter 10 Marketing on the Internet