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2. Fundamentals of Internet Marketing
Chapter 12
Fundamentals of Internet Marketing
Section
12-1
Marketing Basics
Section
12-2
Market Research 2

3. Section 12-1 Why It’s Important
Relationships between buyers and sellers are more personalized and dynamic than ever before.
To reap the benefits—and avoid the risks—of these advancements, both buyers and sellers must recognize marketing fundamentals.
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4. Section 12-1 Key Terms marketing marketing mix market segments
cross selling
promotions
virtual marketing
personalization
cookies
marketing
permission marketing
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5. Marketing
Marketing encompasses countless business decisions, from Web-site designs to delivery options.
marketing the process of planning and carrying out the production, distribution, promotion, and pricing of products and services
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6. The Marketing Mix
To attract new customers and keep old ones coming back, you need to create a customer-focused marketing mix.
marketing mix consists of four critical elements, collectively known as the four Ps: product, price, place, and promotion
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7. P Product Price P P Place Promotion P The Marketing Mix The Four Ps
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8. The Marketing Mix A product is any item manufactured for sale.
Services are not material goods, but rather work done in exchange for payment.
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9. The Marketing Mix
In marketing a product, you need to consider the level of product quality you intend to provide.
Decisions regarding product quality and service levels will depend largely on your target market.
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10. The Marketing Mix
Some target markets include two or more market segments.
market segments distinct groups of people who share certain characteristics
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11. Market Segment Identification
The Marketing Mix
Market Segment Identification
Demographics
Psychographics
Geographics
Product benefits
group people by statistics such as income, age, or gender
define people by their lifestyle preferences
categorize people by their location
identify people according to the satisfaction they get from products
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12. The Marketing Mix
Your product line is a group of related products that complement one another.
Your product mix is the full set of products offered for sale, including all product lines.
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13. The Marketing Mix
A good product mix offers opportunities for cross selling.
cross selling generating another sale by offering related items
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14. The Marketing Mix
Price is the amount of money a business receives in exchange for a product or service.
When setting prices, consider costs, profits, your target market, and image.
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15. The Marketing Mix
When it comes to business, place means where customers shop and how the product or service will be delivered.
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16. The Marketing Mix
You must inspire potential customers to visit your site and purchase your products or services through promotions.
promotions advertisements intended to inform potential customers about products or services
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17. The Marketing Mix
You can enhance your word-of-mouth promotion with virtual marketing.
virtual marketing a cost-effective strategy that uses customers to help promote a business
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18. The Marketing Mix
To the four Ps of the marketing mix, a fifth could be added: personalization.
personalization refers to establishing one-to-one relationships with your customers, for example greeting by name or offering book and movie recommendations based on previous visits
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19. The Marketing Mix
Many online businesses use cookies to personalize their marketing.
cookies small text files written directly onto visitors’ hard drives, containing information such as names, shopping-cart contents, user preferences, or unique identification codes; using cookies, businesses can collect data and analyze the behavioral patterns of their customers to market personally to them
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20. The Marketing Mix
marketing is another way in which you can establish personal relationships with your customers.
marketing inexpensive advertising method with high response rate that allows a business to establish personal relationships with customers, send customized messages, tell customers about new products and sales, or remind them to order gifts for holidays or special events in their profiles
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21. The Marketing Mix
Recently, many companies have started using a new marketing strategy called permission marketing.
permission marketing when a potential customer has consented to receive marketing messages and will only receive advertisements about products and services they have requested
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22. Section Review 1.
What is marketing, and how can it impact an online business?
How can a good product mix create successful marketing opportunities in e-commerce?
Of the four Ps of the marketing mix, how can the component place be best described?
What is permission marketing? 2. 3. 4.
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23. Section 12-2 Why It’s Important
To develop a strong marketing mix, a company must understand its customers’ needs, wants, and buying patterns.
Researching the market enables businesses to cater more accurately to their customers.
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24. Section 12-2 Key Terms market research marketing research
clickstream data
metrics
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25. Identifying Market Opportunities
Traditional bricks-and-mortar retailers have always collected and analyzed market data.
In the world of e-commerce, companies have their own ways of collecting market data.
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26. Market Research
Market research can help a business to recognize opportunities.
market research encompasses all of a business’s efforts to collect data regarding the economic climate, competitor prices or strategies, governmental regulations and policies, consumer demographics, and emerging technologies; distinct from marketing research
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27. Market Research There are two main types of market research. Primary
Primary research is data gathered directly from people.
Secondary
Secondary research is a summary of existing data gathered from nonhuman sources.
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28. Market Research
Marketing research is conducted by all types of businesses.
marketing research focuses specifically on consumer behaviors and the reasons behind buying habits; it collects information about consumers, especially a company’s target market, and analyzes demographics, buying habits, product preferences, and concerns about technology; distinct from market research
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29. Market Research
Clickstream data, or the information recorded in most server logs, is another rich source of information.
clickstream data a Web site visitor’s electronic footprints, recorded in most server logs, including their unique IPs, page views, downloaded images, and URLs
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30. Market Research
Metrics can be used to improve site navigation, create better privacy policies, and determine which pages generate the most interest.
metrics patterns found in clickstream and other data
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31. Market Research
Internet and traditional shoppers want similar things from their shopping experience:
easy navigation
quick and simple checkout
privacy and security
fair prices
quality products
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32. Section Review 1.
How are Internet and traditional shoppers similar?
Why will a business conduct research into its distribution operations?
What is the difference between primary and secondary research? Provide examples of each. 2. 3.
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33. Customizable Slide 33

34. End of
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