1. Business / Marketing Minor Marketing Fundamentals M21439 Session 10: Changes & Innovations

2. Key Concepts The role of the internet E-marketing E-mail Viral marketing iTV marketing Ethical issues Social responsibility

3. The Internet (Porter) Does not change the fundamentals of doing ‘good business’ or ‘good marketing’. Important to keep core strategic objectives in mind and use the Internet to achieve these objectives. Must not view Internet applications as a diversification, separate from the core objectives - if you do you will fail. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

4. New Marketing Communications Media E-mail marketing. Viral marketing. Wireless marketing (m-marketing or mobile marketing). Interactive television (iTV) Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

5. Nature of Internet Marketing PR - reinforcing the company image and dissemination of information. Sales promotion - offering competitions and ‘freebies’. Brochureware. Direct selling. Customer relationship marketing. Market research. Managing supplier relationships. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

6. The 5Ss - Benefits of E-marketing (Smith & Chaffey 2001) S elling goods and services online. Additional customer s ervice. S aving overhead costs. Means of s peaking and entering into one to one dialogue with customers. Exciting and s izzling means of visual impact. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

7. Benefits of E-marketing Valuable means of small businesses communicating with global audiences. Useful way for non-profit organisations to explain their work and tout for donations. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

8. Good Website Design According to Gaudin 2002: Must be continually updated. Be easy to navigate. Have in depth information. Offer quick loading and response times. Other researchers have found honesty, respect, trust and reliability to be of importance. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

9. Consumer Penetration & Spending Source: Euromonitor (2002), extracted from Table 12.7, p. 286. In Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

10. Spending Online Consumers: BMRB report that in 2002 565 of UK Internet users are shopping online. UK consumers appear to be spending more online than other European consumers. B2B: Estimated $4.3 trillion spend by 2005 (IDC). Convenience, cost saving, customer and competitor pressure, opportunities to generate new revenue are all reasons for growth. Online procurement - a large part of B2B online commerce. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

11. Advantages of Using the Web as a Distribution Channel Every hit could gain a potential customer. Print and mailing costs are lower. Reduction in order processing and handling costs. Enhanced after sales service. Distribution of digital products via the web. Get closer to the customer through disintermediation. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

12. The Web as an Advertising Medium Source: Adapted from Integrated Marketing Communications, Financial Times Prentice-Hall, (Pickton, D. and Broderick, A. 2001), Copyright © 2001 David Pickton and Amanda Broderick, reprinted by permission of Pearson Education Limited. Extracted from Exhibit 11.3, p. 210.

13. The Web as an Advertising Medium Source: Adapted from Integrated Marketing Communications, Financial Times Prentice-Hall, (Pickton, D. and Broderick, A. 2001), Copyright © 2001 David Pickton and Amanda Broderick, reprinted by permission of Pearson Education Limited. Extracted from Exhibit 11.3, p. 210.

14. Engendering Customer Loyalty Levels of interaction between customer and an organisation and its brand(s) can help reinforce loyalty. Brand values and image can be enhanced. Providing a trusted quality product online. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

15. The Future for Internet Marketing Bandwidth increases enabling more powerful applications and real time communications. More integrated technologies (TV, PCs, mobile based technologies) making the internet more interesting and more accessible. Infomediaries who will replace traditional intermediaries. Opportunities to attract transient trade. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

16. Marketing and New Media Digital technology: -Enabling marketing to be driven by databases that can track interactions between a business and its customers. -Creating new media opportunities to personalise and target messages better. -Customers have to opt in to new media and give permission. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

17. E- Mail A powerful means of communication and promotional activity. Can help create initial contact and develop online relationship once transactions have taken place. Encourage readers to look at a website. Gain permission to send more information. Surveys suggest that e-mail campaigns are still in infancy. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

18. E-mail Marketing Evolution Source: Rizzi (2001). Copyright © 2002 e-Dialog Inc. In Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

19. Viral Marketing Word of mouth e-mail. Achieved by using the forwarding facility (e-mail a page to a friend). Effective form of communication in terms of believability and trust. Can build up e-mailing list. Some customers may view this as a form of unsolicited mail. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

20. Wireless Marketing Sometimes called m-marketing or mobile marketing. Using text messaging as a means of targeting customers. Marketers must consider customer lifestyles and be careful about setting the right tone of the communication. Any message must be short usually alerting customer to a special offer or promotion. Can fail to inspire or encourage interactivity. Audience tend to be younger people. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

21. iTV Marketing Interactive television marketing is still in its infancy. Allows the user to tailor information, content and actions to their needs. Provides two way communication between consumer and service provider. Take up of digital television is a critical factor here. Marketers can target niche audiences and can personalise dialogue. Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3 rd ed. UK:Prentice Hall

22. Marketing Ethics The Nature of Marketing Ethics –Marketing Ethics Defined –Marketing Ethics Are Controversial Understanding the Ethical Decision-Making Process –Individual Factors –Organizational Relationships –Opportunity Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

23. Factors That Influence the Ethical Decision-making Process Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

24. Ethical Issues Ethical Issues in Marketing –Product Issues –Promotion Issues –Pricing Issues –Distribution Issues Improving Ethical Decisions In Marketing –Codes of Ethics –Controlling Unethical Behaviour Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

25. The Pyramid of Corporate Social Responsibility Source: Reprinted from Business Horizons, July/August 1991. Copyright © 1991 by the Foundation for the School of Business at Indiana University. Used with permission.

26. Social Responsibility The Nature of Social Responsibility (continued) –Impact of Social Responsibility on Marketing –Social Responsibility Issues Consumer Movement Community Relations Green Marketing Diversity Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

27. Social Responsibility The Nature of Social Responsibility (continued) –Strategies for Dealing with Social Responsibility Issues Reaction Strategy Defence Strategy Accommodation Strategy Proactive Strategy Social Responsibility and Marketing Ethics Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin