Chapter 11
Marketing On Internet
Day 16
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Day 16 Agenda
• Assignment #5 DUE
• Quiz 3 will be on April 5
– Chap 8-12
– 15 M/C (60 Points), 4 Short Essay (40 Points)
– Extra credit --- What is the derivation of the
name “cookie” used by Internet Browsers?
• Assignment #6 on next slide
• Start discussion on E-marketing
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Assignment #6
• Only two more to Go!
• Two to Four page paper (450-900 words) on the Pros and
Cons on SPAM (mass e-mails not the mystery meat in the
can)
– 12 point typeface double spaced
– Cite at least two references (magazines, newspaper or book ~not
Web)
• One pro
• One con
• Use footnotes
– In conclusion, give your opinion on SPAM
– Due March 29 at beginning of class
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Objectives
OBJECTIVES
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Pros & Cons of Online Shopping
Internet Marketing Techniques
E-Cycle of Internet Marketing
Marketing Your Presence
Attracting Customers to Site
Tracking Customers
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Pros & Cons of Online Shopping
ONLINE SHOPPING
Pros
• Sorting through
choices
• Vast product selection
• Quick comparison of
products
Cons
• Experimental
information might be
necessary
– E.g. perfumes, clothes
• Delivery of products
might be cumbersome
– E.g. lumber
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Pros & Cons of Online Shopping
REASONS FOR GOING ONLINE
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•
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Establish presence
Serve your customers
Heighten public awareness
Share time-sensitive information
– Impact to stock market?
• Sell goods
• Answer important questions
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Pros & Cons of Online Shopping
REASONS FOR GOING ONLINE
(Cont’d)
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•
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Stay in touch with field personnel
Market at international level
Serve at local market
Market specialized products
Reach the youth market
– 25 and under live on the web
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Internet Marketing Techniques
INTERNET MARKETING TECHNIQUES
Pull to Push Continuum
PASSIVE
Providers of
Information
AGGRESSIVE
Site registered with
many search engines
Specialized services to
users requesting
information
Specialized email to
users requesting
periodic information
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Offline Advertising
Spam Mail
Banner Advertising
Chain Mail
Advertising
Targeted Emails to
Past Customers
SEO-
http://www.seoc
hat.com/
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Internet Marketing Techniques
FORMULA
SNI = Consideration Gap X Site-to-Product Affinity
Consideration Gap
• = Price/Purchase Frequency
• Intensity of pre-purchase deliberation
Site-to-Product Affinity
• =Sales viability + Research intensity + configurability + Service
level
• Ability to deliver online experience correlated to the product/service
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Internet Marketing Techniques
FORMULA (Cont’d)
Whereby
• Price = How expensive the product compared with other household
purchase?
• Purchase frequency = How often does the household purchase the
product?
• Service level = How much customer service does the product need
online?
• Research intensity = How research-intensive is the purchase
decision?
• Configurability = How customizable is the product?
• Sale viability = How viable are online sales of the product?
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
SNI for common products
Product
Price
Freq
Service
Research
Config.
1
5
4
3
3
5
1
2
2
4
1
5
5
3
1
1
5
4
4
5
1
4
4
4
1
Ketchup
Mortgage
Car
Guitar
Painting
Viability
SNI
1 0.8
3
85
3
32
4 22.5
4 8.25
SNI = (price/freq)*(Service + Research + Config. + Viability)
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Aggressive Marketing Techniques
• Spam
– Assignment question
• Pop-ups
– Between Jan and July 2002 11.3 billion popup ads
appeared on the internet
– 687 million from Orbitz.com
– One billion from X10 Wireless
• 32.8 % reach based on pop-up advertising alone
• Became the most visited site on the Internet
• ISP’s make extra revenue blocking Pops-up
– (and sometimes by creating them)
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
E-CYCLE OF INTERNET
MARKETING
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Planning
Product
Pricing
Place
Promotion
Customer Personalization
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
BUSINESS PLANNING
• Business Plan
– Written document identifying your business goals & how you will
achieve them
– Elements
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•
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•
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•
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Mission / Vision
Product
Competition
Target audience
Marketing
Sales plan
Operations
Technology
– Resources
• SBA www.sba.gov
• SCORE www.score.org
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
PRODUCT & PRICING
• Product
– Emphasize on viability, quality & integrity
– Physical vs. Service
• Pricing
– Frequent purchase plans
– On-line auctions
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
PLACE
• Exchange of information between businesses and
delivery companies
• Ensure prompt delivery of physical goods to
customers
• Related to fulfillment
• Internet
– A delivery channel for digital products
– Cheap, fast, effective
– Possibility of tapping / theft of digital data
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
PROMOTION
• AIDA
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–
–
–
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Attention, interest, desire, and action
Get prospective visitors’ attention
Create interests in a product
Build a desire in the product
Get them to purchase product (action)
• Banners
– Internet ads
– Cheap & fit traditional ad-agency formula
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
PERSONALIZATION
• Combination of Promotion & Product
• For customers to receive personalized
information
• ‘Artificial Intelligence’ incorporated into
Internet Marketing
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
MARKETING IMPLICATIONS
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Content
Dynamic & Attractive Sites
Brands
Get to the Point
Promotion
Online Events
Free Giveaways
Consistency
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Marketing Your Presence
PROMOTING YOUR SITE ON
YOUR SITE
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Begins with domain name
Encourage repeat site visits
Update site content
Share with your visitors any new awards
Use promotional giveaways, contests, etc.
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Marketing Your Presence
PROMOTING YOUR SITE ON
THE WEB
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Search engines & directories
Stand out from other sites
Brainstorm keywords for robot search
Ensure the site design is flawless before
submitting to search engines
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Marketing Your Presence
PROMOTING YOUR SITE ON
THE INTERNET
• Use emails to contact registered customers
• Use news groups and mailing lists
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Attracting Customers to Site
ATTRACTING CUSTOMERS
TO SITE
• Keeping site content current
• Offering free information or products
• Offer a free service as a way to entice customers
online for B2B
• Implementing cross-selling strategy
• Ensuring easy and quick navigation
• Introducing event marketing
• Enlisting affiliates
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Attracting Customers to Site
ATTRACTING CUSTOMERS
TO SITE (Cont’d)
• Cultural Differences
– How to market to local customers
• Predicting Buying Behavior
– Save time
– Young, educated, and wealthier population
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Attracting Customers to Site
PERSONALIZATION
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Identification
Determining buyers’ buying pattern
Marketing attractive products
How to add personalization
– Keywords
– Collaborative filtering
– Rule-based
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: Tracking Customers
TRACKING CUSTOMERS
• Gathering web data
– Log files
– Forms
– Cookies
• Persistent vs. Session
• Clickstream data analysis
• Role of shop bot
– Searches sites to compare prices
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall