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OHT 1.1 CHAPTER 1 The Journey Begins… From e-Business to e-Commerce To e-Marketing
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OHT 1.2 Learning objectives Evaluate the relevance of the Internet to the modern marketing concept; distinguish between Internet marketing, e-marketing, e- commerce and e-business; identify the key differences between Internet marketing and traditional marketing; assess how the Internet can be used in different marketing functions
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OHT 1.3 Questions for marketers How significant is the Internet as a marketing tool? How does Internet marketing relate to e- marketing, e-commerce and e-business? What are the key benefits of Internet marketing? What differences does the Internet introduce in relation to existing marketing communications models?
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OHT 1.4 The impact of the Internet Andy Grove, Chairman of Intel, one of the early adopters of e-commerce, has made a meteorological analogy with the Internet. He says: Is the Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business? (Grove, 1996)
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OHT 1.5 The impact of the Internet £1.8bn<1%B2C TravelThomas Cook £18.4bn1.4%B2C GroceryTesco £76m3.4%B2C FoodDomino’s Pizza £761m Group7%B2B ElectronicsElectrocomponents £100m10%B2C BooksBook Club Associates $1.3bn11%B2C ClothingLands End Clothing $25bn48%B2B, B2C Computers Dell £264m85%B2C Air travelEasyjet $19bn90%B2B Networking hardware Cisco Overall turnover Online contribution SectorOrganisation
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OHT 1.6 The Internet’s impact on you? How many of you have purchased something on the Internet in the last 6 months? How many times have you used the Internet as an information source, before buying offline?
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OHT 1.7 Demand – Internet access Figure: Global variation in number of PCs per hundred population and percent Internet access in 2000 Source: ITU (www.itu.int)
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OHT 1.8 How does the Internet contribute to marketing? The definition of marketing by the Chartered Institute of Marketing (http://www.cim.co.uk/) is: Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability
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OHT 1.9 What is e-marketing? E-marketing is: Applying… Internet and other digital technology… (web, e-mail, wireless, iTV, databases) to… acquire and retain customers (through a multi-channel buying process and customer lifecycle) by… Improving customer knowledge, targeting, service delivery and satisfaction
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OHT 1.10 E-business and e-commerce Figure: The distinction between buy-side and sell-side e-commerce
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OHT 1.11 Relationship between e-commerce and e-business Figure: Three alternative definitions of the relationship between e-commerce and e- business
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OHT 1.12 Internet marketing contexts Figure: Summary of transaction alternatives between businesses and consumers
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OHT 1.13 Internet applications Figure: Market and product strategic grid
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OHT 1.14 How it works - components Figure: Infrastructure components of the Internet
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OHT 1.15 Internet, intranet and extranet Figure 1.12 The relationship between access to intranets, extranets and the Internet SOURCE: Chaffey (2003): Internet Marketing, 2nd edition, Pearson Education Limited
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OHT 1.16 Interactivity and intelligence Figure: Summary of communication models for: (a) traditional media, (b) new media
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OHT 1.17 Individualization Figure: Summary of degree of individualisation for: (a) traditional media (same message), (b) new media (unique messages and more information exchange between customers)
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OHT 1.18 Integration Figure: Channel requiring integration as part of integrated e-marketing strategy
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OHT 1.19 Mixed-mode buying Figure: The role of mixed-mode buying in Internet marketing
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OHT 1.20 Conversion marketing Figure: A model of the Internet marketing conversion process
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OHT 1.21 Conversion marketing - example Figure: An example of the conversion process
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