Chapter 1
What is Marketing
• A Process of
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Market analysis
Market planning
Implementation
Control
• Four Ps
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Product
Pricing
Promotion
Place
• Relationship
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Awareness
Exploration
Commitment
dissolution
• Exchange
• A satisfaction of needs
What is Internet
• Networks of networks
• History of Internet
• Application models
– B2B, B2C, C2C, G2C, mobile commerce
• Marketing Resource Allocation model
Brick & mortar
location
Online
Off
On
Traditional
Semi
Semi
Pure
What is Internet marketing
• The process of building and maintaining customer
relationships through online activities to facilitate the
exchange of ideas, products and services that satisfy the
goals of both parties.
Seven Stage of Internet Marketing
1.
2.
3.
4.
5.
6.
7.
Framing market opportunity
Formulating the market strategy
Designing the customer experience
Creating the customer interface
Designing the market program
Leveraging customer information through technology
Evaluating the market program
Framing market opportunity (identify)
a.
b.
c.
What is an opportunity
How many in your life time
Unmet and underserved needs  identify target segments
resource availability  competitiveness  go /no go
Formulating the Marketing Strategy (plan)
a.
b.
c.
Long term
short term
Corporate
business unit
Traditional marketing and internet marketing (integrated)
Designing the customer experience (design)
Experiencing functionality
Intimacy (they understand me)
Evangelism (love to share the story)
Creating the customer interface (design)
Designing the marketing program (design)
a.
Designing a combination of marketing actions (6) to move
customers from awareness — exploration — commitment
b.
Customer relationship
1)
2)
3)
4)
c.
Awareness
Exploration
Commitment
Dissolution
Marketing programs
1.
Products
1)
2)
3)
2.
Tangible v. Intangible
Physical v. Psychological effects (Nike, bottle water)
Occasion sensitive (wine as a gift or own consumption)
Pricing
1)
2)
Low price leader (Wal-Mart)
High price (cosmetics)
3.
Community: membership
4.
Place/distribution
1)
2)
5.
Tangible v. Digital distribution
Many services are converted to digital delivery to save cost
Communication
1)
Traditional communication
a.
b.
2)
Internet communication
a.
b.
c.
•
Place constraint
Time constraint
Any place any time
Individualization
Interactivity
Branding
1)
2)
3)
4)
Name, term, sign, symbol or design
Domain name
Microsoft: what do you want to do today? Stay connected
Wal-mart: Everyday low price
Leveraging customer information
through technology
• Use internet to obtain, analyze, and utilize customerrelevant information
Evaluating the marketing program