Part Seven
Implementation
and Electronic
Marketing
23
Marketing on the Internet
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PowerPoint Presentation by Charlie Cook
Chapter Learning Objectives
• To define electronic marketing and electronic
commerce and recognize their increasing importance
in strategic planning
• To understand the characteristics of electronic
marketing—addressability, interactivity, memory,
control, accessibility, and digitalization—and how
they differentiate electronic marketing from traditional
activities
• To examine how the characteristics of electronic
marketing affect marketing strategy
• To identify the legal and ethical considerations in
electronic marketing
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23–2
Chapter Outline
• The Dynamic Nature of Electronic Marketing
• Basic Characteristics of Electronic Marketing
• e-Marketing Strategies
• Legal and Ethical Issues in e-Marketing
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23–3
The Dynamic Nature of Electronic
Marketing
• Electronic Commerce (e-Commerce)
–Sharing business information, maintaining business
relationships, and conducting business transactions by
means of telecommunications networks
• Electronic Marketing (e-Marketing)
–The strategic process of creating, distributing,
promoting, and pricing products for targeted customers
in the virtual environment of the Internet
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23–4
Benefits of e-Marketing
• Open and Instantaneous Flows of Information
–Marketers and customers share information in real-time
on prices, specifications, and product availability.
• Enhanced Customer Service Efficiencies
–Rapid response and always-on availability (e.g., 24 x 7
customer support)
• Worldwide Scope of the Electronic Market
–Opens markets to firms of all sizes
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23–5
The Projected
Growth of
e-Commerce
Worldwide
Source: Forrester Research, Inc. “Global
eCommerce Approaches Hypergrowth,” April
18, 2000, copyright © 2000. Reprinted by
permission of Forrester Research, Inc.
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FIGURE 23.1
23–6
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23–7
Basic Characteristics of Electronic
Marketing
• Addressability is a marketer’s ability to identify
customers before they make a purchase
• How e-Merchants Attain Addressability
–Limit access to areas of their website to encourage
customer registration
–Offer contests and prizes in exchange for consumer
information
–Place “cookies” on visitor’s computer to track visitor
usage and preferences
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23–8
Basic Characteristics of Electronic
Marketing (cont’d)
• Interactivity
–The ability to allow customers express their needs and
wants directly to the firm in response to the firm’s
marketing communications
• Real-time interaction with customers
• Broader market coverage at a lower cost
• Community
–A sense of group membership or feeling of belonging
• Virtual communities on the Web
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23–9
Basic Characteristics of Electronic
Marketing (cont’d)
• Memory
–The ability to access databases or data warehouses
containing individual customer profiles and past
purchase histories and to use these data in real-time to
customize a marketing offer.
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23–10
Basic Characteristics of Electronic
Marketing (cont’d)
• Control
–Customers’ ability to regulate the information they view
and the rate and sequence of their exposure to that
information
–Hypertext
• Highlighted text that permits website visitors to jump from
one point to other points on the site or to other sites
–Portal
• A multiservice website that serves as a gateway to other
websites
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23–11
Basic Characteristics of Electronic
Marketing (cont’d)
• Accessibility
–The ability to obtain information available on the
Internet
–Informs and educates the inquiring consumer about
competing products and prices
–Creates competition for the consumer’s attention
–Increases the importance of having a recognizable
brand name
–Increases the importance of having an easily
recognized uniform resource locator (URL)
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23–12
Basic Characteristics of Electronic
Marketing (cont’d)
• Digitalization
–The ability to represent a product, or at least some of its
benefits, as digital bits of information
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23–13
e-Marketing Strategies
e-Marketing
Strategy Considerations
Target
Markets
Product
Marketing
Distribution
Systems
Promotion
Mediums
B2B
B2C
C2C
Branding
Information
Services
Supply
Chain
Relationships
Interactivity
Advertising
Publicity
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Pricing
Comparison
of Prices
Access to
Competition’s
Prices
23–14
e-Marketing Strategies (cont’d)
• Target Markets
–More precision and accuracy in customer
identification—“share of the customer”
• Most profitable and loyal customers
–Focus is on customer relationship management (CRM).
• Using customer information to build long-term
relationships
–Electronic data interchange (EDI)
• Gives customers real-time access to their suppliers’
inventories
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23–15
Dimensions of e-Marketing
Business-toBusiness (B2B)
Business-toConsumer (B2C)
e-Marketing
Target Markets
Consumer-toConsumer (C2C)
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23–16
e-Marketing Strategies (cont’d)
• Promotion Considerations
–Banner ads: small rectangular ads, static or animated,
that appear at the top of a webpage
–Click-through rate: the percentage of ads that website
visitors actually click on
–Keyword ads: ads that relate to text or subject matter
specifically in a web search
–Button ads: small ads, square or rectangular, bearing a
corporate or brand name or logo and usually appearing
at the bottom of a webpage
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23–17
Legal and Ethical Issues in e-Marketing
• Personal Privacy Issues
–Unauthorized placement of “cookies” on personal
computers
–Website information requirements for registration
–Collection of information from children
–Use of “spyware” in software
• Spam
–Unsolicited commercial e-mail (UCE)
• Misappropriation of Intellectual Property
–Illegal copying of copyrighted software, movies, CDs,
and other creative materials
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23–18
The BBBOnLine Privacy Program and Seal
FIGURE 23.2
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23–19
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23–20
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23–21
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23–22
After reviewing this chapter you should:
• Be able to define electronic marketing and electronic
commerce and recognize their increasing importance in
strategic planning
• Understand the characteristics of electronic marketing—
addressability, interactivity, memory, control, accessibility,
and digitalization—and how they differentiate electronic
marketing from the traditional marketing environment
• Have examined how the characteristics of electronic
marketing affect marketing strategy
• Be aware of legal and ethical considerations associated
with electronic marketing
Copyright © Houghton Mifflin Company. All rights reserved.
23–23
Chapter 23
Supplemental Slides
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23–24
Key Terms and Concepts
• The following slides (a listing of terms and
concepts) are intended for use at the instructor’s
discretion.
• To rearrange the slide order or alter the content
of the presentation
–select “Slide Sorter” under View on the main menu.
–left click on an individual slide to select it; hold and drag
the slide to a new position in the slide show.
–To delete an individual slide, click on the slide to select,
and press the Delete key.
–Select “Normal” under View on the main menu to return
to normal view.
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23–25
Important Terms
• Electronic Commerce (e-Commerce)
–Sharing business information, maintaining business
relationships, and conducting business transactions by
means of telecommunications networks
• Electronic Marketing (e-Marketing)
–The strategic process of creating, distributing,
promoting, and pricing products for targeted customers
in the virtual environment of the Internet
• Addressability
–A marketer’s ability to identify customers before they
make a purchase
Copyright © Houghton Mifflin Company. All rights reserved.
23–26
Important Terms
• Interactivity
–The ability to allow customers express their needs and
wants directly to the firm in response to the firm’s
marketing communications
• Community
–A sense of group membership or feeling of belonging
• Memory
–The ability to access databases or data warehouses
containing individual customer profiles and past
purchase histories and to use these data in real-time to
customize a marketing offer
Copyright © Houghton Mifflin Company. All rights reserved.
23–27
Important Terms
• Control
–Customers’ ability to regulate the information they view
and the rate and sequence of their exposure to that
information
• Hypertext
–Highlighted text that permits website visitors to jump
from one point to other points on the site or to other
sites
• Portal
–A multiservice website that serves as a gateway to
other websites
Copyright © Houghton Mifflin Company. All rights reserved.
23–28
Important Terms
• Accessibility
–The ability to obtain information available on the
Internet
• Digitalization
–The ability to represent a product, or at least some of its
benefits, as digital bits of information
• Customer relationship management (CRM).
–Using customer information to build long-term
relationships
• Electronic data interchange (EDI)
–Real-time access to suppliers’ inventories
Copyright © Houghton Mifflin Company. All rights reserved.
23–29
Important Terms
• Banner ads
–Small rectangular ads, static or animated, that appear
at the top of a webpage
• Click-Through Rate
–The percentage of ads that website visitors actually
click on
• Keyword ads
–Ads that relate to text or subject matter specifically in a
web search
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23–30
Important Terms
• Button ads
–Small ads, square or rectangular, bearing a corporate
or brand name or logo and usually appearing at the
bottom of a webpage
• Spam
–Unsolicited commercial e-mail (UCE)
• Pirating
–Illegal copying of copyrighted software, movies, CDs,
and other creative materials
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23–31
Transparency Figure 23G
The Relationship Between Websites and Retail
Stores
Source: American Demographics, December 2000, p. 42. Adapted with permission.
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23–32
Transparency Figure 23I
Internet Users Comfortable Giving Out Personal
Information
While Internet users don’t mind giving out their e-mail addresses,
they’re far less comfortable giving out more personal information.
What users are most comfortable giving out:
Source: USA Today, September 28, 2001, p. A1. Used with permission.
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23–33