Internet Marketing
chapter
15
Chapter 15 Version 3e
Prepared by
Deborah Baker
Texas Christian University
©2003 South-Western
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Learning Objectives
1. Describe the impact of the Internet on
business practices.
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2. Describe the current Internet marketing
environment.
3. Discuss online business strategies.
4. Discuss Internet marketing objectives and
strategies.
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1
Learning Objective
Describe the impact of the Internet
on business practices.
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1
Electronic Marketing Channel
Find out about products
Get answers to questions
Leave messages
The New
Business
Franchise
Solve problems
Make purchases
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Customer Relationship Marketing 1
on the Internet
Profiles of preferences
E-mail notifications
Opportunities
for
Customer
Relationship
Marketing
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Customer service
Convenient online
shopping
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Financial Implications
Competitive advantage
Reduction in expenses
Reduced inventory
Lower financial
barriers to entry
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Marketing Research
through the Web
1
Vast information sources for
secondary research
Better primary research
The Web
in
Marketing
Research
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Web-based surveys and
focus groups
Information
about competitors
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Advantages of
Electronic Publications
1
Easier access to worldwide information
Information content that is more current
The ability to make complex searches
Incorporation of multi-media
Lower publication costs
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1
Internet Marketing Plan
Specific Internet Marketing
Objectives and Strategies
Statement of Company’s
online Business Strategy
Analysis of Internet
Marketing Environment
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2
Learning Objective
Describe the current Internet
marketing environment.
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Basic Forms of Virtual Business
Business-to-Consumer
(B2C)
Basic Forms
of
Electronic
Commerce
Business-to-Business
(B2B)
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Internet Demographics and Trends
2
Attitude toward technology
Factors
Influencing
Online
Buying
Behavior
Income
Motivation to use
Technology
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Internet Demographics and Trends
Early Adopters
Internet
Buyer
Categories
“Mainstreamers”
Laggards
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Internet Demographics and Trends
Push Strategy
Television, Radio, Print
Pull Strategy
Internet
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The Virtual Community
Bulletin Boards
Chat Rooms
Types of
Virtual
Communities
Newsletters
Discussion Lists
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Internet’s Influence on
The Global Village
2
Broadens and enhances access
in developing nations
Allows businesses to “leapfrog”
into development
Levels playing field for
disadvantaged countries
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2
The Digital World
Speed
Global
Marketing
Implications
Value
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3
Learning Objective
Discuss online business strategies.
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3
Strategies for Web Success
Offer customer-driven
products
Sell at a fair price
To Survive
and Prosper...
Use promotion
Make products readily
available
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Examples of Internet Strategies
Increase or enhance exposure
Improve customer service
Provide new products/services
Add value to existing products/services
Lower overall company costs
Create
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one-to-one
customer
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Online Positioning
 Identify the most important target
market
 Identify that market’s online need
 Determine how the company’s Internet
presence meets that need
 Identify how the online presence is
better than the competition.
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Factors in Internet
Marketing Programs
3
Prior Internet
marketing experience
Factors
in
Internet
Marketing
Degree of program
sophistication
Program Magnitude
Program Dynamics
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3
The Internet Presence
E-Mail
Internet
Marketing
Techniques
Corporate Web Site
Interactive Web Site
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3
Uses of Interactive Web Sites
Execute Transactions
Welcome
to my Web Site.
You are
Visitor Number
495,251
Deliver Electronic
Products and Services
Collect Demographic and
Behavioristic Customer Data
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Internet Direct Selling
Disadvantages
Advantages
 Eliminate distribution
network complexity
 Need to manage all
channel activities
 Increase customer
contact
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3
E-Tailing
Retailing on the Web
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Internet Shopping vs.
Store Shopping
3
 For many, Internet shopping is more
convenient and less expensive
 Store shopping provides product
“touch and feel”
 E-tailing changes shopping from
entertainment to a functional task
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4
Learning Objective
Discuss Internet marketing
objectives and strategies.
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Key Success Factor for
Internet Businesses
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Internet Marketing Objectives
Online Market Share
Sales Level
Internet
Marketing
Objectives
Repeat Purchase
Market Positioning
Image
Brand Awareness
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Product Strategies on the Web
Ways to Overcome
Lack of
Product Contact
Personalized
Service
Virtual online
Product Trials
Branding
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Online Promotion
Banner Advertisements
Button Advertisements
Interstitial Advertisements
Untargeted E-Mail Marketing
Targeted E-Mail Marketing
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4
Pricing on the Internet
Charging different prices for
different channels can be effective if:
 Channel use behavior is an effective
means to segment the market
 There is a benefit to encourage use of
one channel rather than the other
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Evaluating the Outcome
Hits
Page View
Capturing
Web
Statistics
Site Registration
Cookie Technology
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