Discussion Slide
13
Internet Purchases
• What was the last purchase you made
using the Internet?
• What percentage of your purchases
are made via the Internet?
• What products do you purchase over
the Internet?
• What do you think is the future for
Internet businesses?
• What has made Google.com
successful?
• What obstacles do Internet firms
face?
© 2007 by Prentice Hall
13-1
Internet Marketing
13
Chapter Overview
•
•
•
•
•
•
Profile of Internet users
Internet marketing functions
E-commerce
IMC and the Internet
Direct and viral marketing
Internet design issues
© 2007 by Prentice Hall
13-2
Internet Growth
• Daily access the Internet
• Americans – 48%
• Canadians – 47%
• Britons – 36%
•
•
•
•
Communication
Voice over Internet Protocol (VoIP)
Web blogs
Internet retail sales
• $144 billion, 7% of global retail sales
© 2007 by Prentice Hall
13-3
FIGURE
13.2
Internet Services Offered by Marketing Agencies
• Building databases for e-mail campaigns.
• Designing e-mail campaigns linking customers to
Web site information.
• Creating fun and innovative games to attract and
keep customers coming back to Web page.
• Creating incentive programs.
• Translating printed documents, catalogs, brochures,
and newsletters for the Internet.
• Adding graphics to the Web site.
Source: Ellisor, “Business-to-Business Offer WWW Opportunities,” Houston Business
Journal, (September 17, 1999), Vol. 30, No. 7, p. 18B.
© 2007 by Prentice Hall
13-4
FIGURE
1 3. 3
Functions of the Internet
•
•
•
•
•
Advertising
Sales support
Customer service
Public relations
E-commerce (Retail store)
© 2007 by Prentice Hall
13-5
E-Commerce
 Selling of goods and services on the Internet
 Entry into e-commerce
 Trend of future
 Fad
 Alternative mode of shopping
 Source of information for shoppers
© 2007 by Prentice Hall
13-6
$60.0
$52.4
$50.0
$40.0
$8.1
$7.5
$5.1
$4.3
$3.7
Event tickets
Music & Videos
$11.7
Food & Beverage
$12.0
Consumer
electronics
$15.4
$20.0
$10.0
Automotive
$30.0
$3.6
Source: “Cyber Shopping,” License, Vol. 7, No. 10 (November 1004), p. 12.
© 2007 by Prentice Hall
Books
Apparel
Computer
hardware/software
Office, home,
garden
$0.0
Travel
Billions of Dollars
Top Cyber Shopping Categories
13-7
E-Commerce Components
• Catalog
• Shopping cart
• Payment
procedure
© 2007 by Prentice Hall
13-8
Reasons People Wary of Online Purchases
• Security issues
•
•
•
•
Credit card charges
Identity theft
Fraud
History and Advertising
• Purchasing habits
• Incentives
© 2007 by Prentice Hall
13-9
E-Commerce Incentives
• Financial incentives
• Convenience-based incentive
• Value-added incentive
© 2007 by Prentice Hall
13-10
Financial Incentives
 Attract first-time purchaser
 Repeat purchasers
 Cyberbait
 Most effective incentives
 Free shipping & handling
 Dollar discounts
 Free gifts
 Financial incentive
 Meaningful
 Changed periodically
© 2007 by Prentice Hall
13-11
Convenience Incentives
 Time
 Update and change Web site
 Easy to locate merchandise
 Convenience services
 Weddings
 Popular items
 Measurement charts
© 2007 by Prentice Hall
13-12
Value-Added Incentives
 Change purchasing habits – long term
 Personalized shopping
 Examples
 Merchandise available only online
 Free online courses
 Barnes & Noble, Charles Schwab
 Free information
 Tide and Ragu
© 2007 by Prentice Hall
13-13
Business-to-Business E-Commerce
$900
Billions of Dollars
$800
$700
$767
$600
$624
$500
$400
$466
$517
$551
$300
$272
$200
$100
$40
$0
1998
$95
1999
2000
2001
2002
2003
2004
2005
Source: “Data,” B to B, Vol. 90, No. 5 (April 11, 2005), p. 5.
© 2007 by Prentice Hall
13-14
Business-to-Business E-Commerce
• Excellent for re-buy situations
• Brand name recognition important
• Requires incentives
• Financial
• Convenience
• Value-added
• Online exchanges and auctions
• Store or warehouse locator
© 2007 by Prentice Hall
13-15
iGo.com
Http://www.igo.com
© 2007 by Prentice Hall
13-16
International E-Commerce
• Internet allows for sales worldwide.
• Areas to address for international business.
•
•
•
•
•
Communication barriers
Cultural differences
Shipping of merchandise
Internet capabilities in other countries
Payment procedures
• Web sites in different languages.
• Call centers in different countries.
© 2007 by Prentice Hall
13-17
IMC and the Internet
• Important component of the IMC
• Communication between departments
•
•
•
•
•
•
Marketing
Human resource
Production
Information technology (IT)
Call centers
Shipping departments
© 2007 by Prentice Hall
13-18
FIGURE
13.7
What Drives People to a New Site?
•
•
•
•
•
Internet content search (38%)
Word-of-mouth (30%)
Internet banner (20%)
Television ad (7%)
Print ad (5%)
Source: Don Jeffrey, “Survey Details Consumer Shopping Trends on the Net,”
Billboard, (May 29, 1999), Vol. 111, No. 22, p. 47.
© 2007 by Prentice Hall
13-19
IMC and the Internet
•
•
•
•
•
Search engine key words
Online advertising
E-mail advertising
Blogs
Off-line advertising
© 2007 by Prentice Hall
13-20
Why Dot.com Print Ads Fail to Grab
and Hold Attention
• Lack visual power.
• Ambiguous illustrations that require too
much time and effort to understand.
• Often is not legible.
• Contains no optimum “flow.”
• Tends to ignore the reader’s question,
“what’s in it for me?”
Research Study by Roper Starch Worldwide (November 13, 2000)
© 2007 by Prentice Hall
13-21
IMC and the Internet
Branding
• Brand image important
• 82% brand name influenced online purchase
• Web site must support brand image
• Cyberbranding
• Brand spiraling
• Halo brand effect
© 2007 by Prentice Hall
13-22
Information Online Impacts Brand Impressions
Information companies had online influenced the impressions consumers had of a
brand, even If the product was purchased in a store. The data below indicate the
percentage of consumers who said online content changed their view of a brand.
•
•
•
•
•
•
•
•
Travel or lodging
Clothing or apparel
Music
Household products
Electronics or software
Books
Toys
Gifts, flowers, or cards
27%
33%
24%
31%
40%
29%
19%
21%
Source: “Far-Reaching Effects,” Marketing News, Vol. 38 (February 1, 2004), p. 4.
© 2007 by Prentice Hall
13-23
FIGURE
1 3. 8
B-to-B Techniques to Boost Web Site Awareness
• Putting the Web address on printed
materials and promotional items. (91%)
• Advertising in trade journals. (74%)
• Registering the Web site with search
engines for keywords. (72%)
• Buying banners on other sites. (25%)
© 2007 by Prentice Hall
13-24
This Juno ad was
placed in trade
magazines to increase
business awareness.
It alludes to the
difficulty of proper
targeting.
Http://www.juno.com
© 2007 by Prentice Hall
13-25
This Buzzsaw.com
advertisement
was placed in trade
magazines for the
construction industry.
The company
promises to help
business evolve and
survive as the
industry undergoes
rapid change.
http://www.buzzsaw.com
© 2007 by Prentice Hall
13-26
IMC and the Internet
Brand Loyalty
• Brand-loyal consumers
• Communication key to developing loyalty
• Make shopping or browsing pleasurable
• Establish one-to-one communications
• Personalization of information
• Niche customers
© 2007 by Prentice Hall
13-27
IMC and the Internet
Sales Support
• Provide information to sales staff
• Client information
• Product information
• Company information
•
•
•
•
Provide information to customers
Prospecting
Qualifying prospects
Gathering information
© 2007 by Prentice Hall
13-28
IMC and the Internet
Customer Service
• Cost-effective method
• Easy-to-use Web site
• Alternative communication channels
• Discussion groups
• Chat rooms
• Blogs
• Access by businesses
• Access by manufacturers
© 2007 by Prentice Hall
13-29
IMC and the Internet
Customer Service
• Response time to inquiries
• 37% satisfied with online customer
service, compared to 85% for traditional
• Older consumers less satisfied than
younger consumers
• Only 34% acknowledge receipt of
customer e-mails
• 24% of e-mails or inquiries are never
answered
© 2007 by Prentice Hall
13-30
Steps to Improve Customer Service
Institute of Management Administration (IOMA)
1) Knowledgeable service reps
2) Confirm customer’s order or inquiry –
provide timeframe
3) Provide personal touch
4) Offer opportunity for personal
communication
5) Use good communication skills
6) Be aware of work habits of customers
© 2007 by Prentice Hall
13-31
Direct Marketing
• Internet is ideal medium
• Direct mail is most effective driver for online
direct marketing
• Interactive marketing
• Personalization of content, offers, and e-mails
• Blue Martini E-Merchandising
• Http://www.bluemartini.com
• Edify Smart Options
• Http://www.edify.com
• Direct e-mails, request permission
© 2007 by Prentice Hall
13-32
Viral Marketing
•
•
•
•
Prepared ad attached to e-mail
Word-of-mouth advocacy
Message passed voluntarily
Higher percentage pass message
along to others
• Scope
• Mazda
© 2007 by Prentice Hall
13-33
FIGURE
13.9
Clues to Poor Design
• Clueless banners
• Slow loading front page
• Forcing people to go through
numerous screens
• Too much verbal information
• Too many technical terms
• Sites that are hard to navigate
© 2007 by Prentice Hall
13-34
FIGURE
13.10
Tips for Creating Winning Web Sites
•
•
•
•
•
•
•
•
•
•
•
Decide strategic purpose.
Easy access and quick loading.
Written content should be precise.
Content is key.
Graphics should support content.
Make an offer to encourage a response.
Ask for site evaluation.
Provide easy to use navigation links on every page.
Use gimmicks to gain attention at the beginning.
Change Web site on a regular basis.
Measure results continually.
Source: Based on Ray Jutkins, “13 Ideas That Could Lead to Successful Web Marketing,”
Advertising Age’s Business Marketing, (June 1999), Vol. 84, No. 6, p. 27.
© 2007 by Prentice Hall
13-35
Click image to go to site.
A Web site with clear navigation.
© 2007 by Prentice Hall
13-36