1. MGMT 120 - Principles of Marketing Summer 20051 The Internet as a Marketing Tool Advantages Serves as an information conduit Direct sales channel Tracks customers and mines data Interactive medium that can build marketing relationships

2. MGMT 120 - Principles of Marketing Summer 20052 The Internet as a Marketing Tool Disadvantages Privacy Limited to customers and businesses connected to the web Search and navigation is sometimes difficult Speed Slow connection time Web sites with large number of graphics

3. MGMT 120 - Principles of Marketing Summer 20053 Stages of E-marketing Up and going All that hype Shaken, rattled and rolled over Survival of the fittest Getting down to business

4. MGMT 120 - Principles of Marketing Summer 20054 Up and Going 1995 began the commercial use of the internet 1996 – 500,000 web sites worldwide 2001 - 500 million internet users “If you build it, they will come” Fueling web site growth - banner advertising Fueling access - free ISP

5. MGMT 120 - Principles of Marketing Summer 20055 All That Hype B-to-b sales were predicted to increase from $420 billion in 2000 to $7.2 trillion by 2004 W-marketing P-marketing T-marketing E-marketing All “new paradigms” get absorbed into the marketing tool chest

6. MGMT 120 - Principles of Marketing Summer 20056 Shaken, Rattled and Rolled Over Infrastructure and purchasing habits take years to change regardless of the technology Must adapt technology to people rather than forcing people to adapt to technology Making money = business success Market value of stocks drop 80-90%

7. MGMT 120 - Principles of Marketing Summer 20057 Survival of the Fittest Gone Webvan eToys Garden.com Furniture.com Napster Still Around Travelocity Online stock brokers Ebay Amazon.com AOL Time Warner

8. MGMT 120 - Principles of Marketing Summer 20058 Getting Down to Business The number of internet users worldwide is still increasing e-commerce accounts for only 2% of all trade Visits measured in cookies and registrations, not hits Customer-driven not technology-driven

9. MGMT 120 - Principles of Marketing Summer 20059 Getting Down to Business Consumer and business cost efficiencies are critical About $160 billion in mortgages were processed online in 2001 15 million people paid bills online in 2001 16 million people accessed their checking or savings accounts online in 2001 The internet is not a good place to get new customers but a great place to keep them

10. MGMT 120 - Principles of Marketing Summer 200510 Getting Down to Business Internet shoppers are sophisticated Complex questions require real time answers Cost efficiencies of call center response, e- mail response, web site FAQ section or search option Nordstrom.Com Text-based chat and swatching