Internet properties and
marketing implications
MARK 430
Advanced Online Marketing
Week 1
After this class you will
understand:
 What online or eMarketing is
 How it differs from traditional marketing
 What the properties of the Internet are that
offer opportunities (and challenges) to
marketers
Why study online marketing?
 Traditional marketing practices are being transformed
 Continuing strong growth in business-to-consumer
and business-to-business eCommerce
 New skills, knowledge and strategies in high demand
in the business world
 Marketers need to understand technology and
collaborate with IT colleagues
E-Business Markets
 There are three important markets that both sell to
and buy from each other:
 Businesses
 Consumers
 Governments
What is online marketing / emarketing?
 marketing is a process for creating and
delivering goods, services, and ideas to
customers
 e-Business components involved:
 e-commerce
 business intelligence
 supply chain management
What is online marketing / emarketing?
 marketing is based on exchanges that are
valuable to both the customer and the
company
 e-Business components involved:
 enterprise resource planning
 business intelligence
 customer relationship management
eMarketing objectives
 Recognizing customer needs and filling them
better than the competition
 Helping to make a company’s offerings
something that customers want to buy
Is eMarketing simply information
technology applied to traditional
marketing?
 E-marketing affects traditional marketing in two
ways:
 Increases efficiency in traditional marketing functions
 Use of Internet technology transforms many marketing
strategies.
 Results: new business models that add customer value
and/or increase company profitability.
The impact of the Internet on
the marketing mix
 Product – new products, new delivery
mechanisms
 Price – dynamic pricing, comparison pricing,
bartering, bidding
 Place – direct distribution of digital products,
supply chain management, channel
integration
 Promotion – new communications media,
advertising efforts
The transformation of the marketing mix
 Shift away from a selling orientation toward a
customer-focused or customer-centric orientation
 The 4 Ps become the 4 Cs (Albert and Sanders
2002)
 Customer focused solution
 Cost (increase in value)
 Convenience
 Communication
Key issues for corporations:
 How to use information technology profitably
 How to understand what technology means for their
business strategies
 How marketing strategies can be enhanced by the
Internet, databases, wireless mobile devices, and
other technologies
 What’s next after the rapid growth of the Internet and
the dot-com bubble
Internet properties and marketing
implications
Internet properties and marketing
implications
Internet Properties and Marketing
Implications
 Internet means:



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new channels for selling and marketing
new pricing and promotion options
new forms of market research and new products
improved distribution and customer service
 Most important is a shift toward customer power
What is driving customer power?
 More options
 More information
 Simpler transactions
 Network model versus broadcast model (or
why the Internet is not TV)
 buyer attention becomes a scarce commodity
Revenge of the Consumer
 The rebellion started with television channel surfing
using the remote control – now TiVo and pop-up killers.
 Now consumers have control via the mouse.
 Consumers are more demanding and more
sophisticated, and marketers will have to become better
at delivering customer value.
 Caveat emptor (let the buyer beware) becomes cave
emptorum (beware of the buyer)
The Cluetrain Manifesto: the end of
business as usual
 A powerful global conversation has begun.
Through the Internet, people are discovering
and inventing new ways to share relevant
knowledge with blinding speed.
As a direct result, markets are getting smarter
– and getting smarter faster than most
companies
The Cluetrain Manifesto. Levine, Locke, Searls, and Weinberger. Perseus Publishing. 2000
Consumer Needs
What do customers want in the information economy?
 Privacy: Customers want marketers to keep their data
confidential + don’t want to be bothered by sales calls at
home during dinner,
 Want marketers to ask permission before sending
commercial e-mail messages,
 Want e-commerce to provide convenience, self-service,
speed, good customer service, personal attention, and
value.
Consumer Needs
e-Marketing has the potential to meet all these needs:
 With mass customization individuals can contact
firms over the Internet and receive responses
tailored to their needs,
 Business can also customize and personalize
products and communications to strengthen longterm relationships with customers.
E.g. Amazon.com presents personalized Web pages to
users
4 steps to successful marketing
strategy
1. Understand customer needs
2. Formulate a strategy to fill those needs
3. Implement effectively and efficiently
4. Build trusting relationships with customers
(Urban pg.7)
Over the next 3 months we will examine and
understand various elements of this strategy