Transcript Marketing On The Internet

Chapter 11
Marketing On The Internet
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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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Establish presence
Serve your customers
Heighten public awareness
Share time-sensitive information
Sell goods
Answer important questions
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© 2002 Prentice Hall
Marketing on Internet: Pros & Cons of Online Shopping
REASONS FOR GOING ONLINE
(Cont’d)
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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
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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
Offline Advertising
Spam Mail
Banner Advertising
Chain Mail
Advertising
Targeted E-mails to
Past Customers
Specialized e-mail to
users requesting
periodic information
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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 is 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
Marketing on Internet: E-Cycle of Internet Marketing
E-CYCLE OF INTERNET
MARKETING
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Planning
Product
Pricing
Place
Promotion
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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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Mission / Vision
Product
Competition
Target audience
Marketing
Sales plan
Operation
Technology
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
PRODUCT & PRICING
• Product
– Emphasis 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
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Get prospective visitors’ attention
Create interest in a product
Build a desire in the product
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 e-mails 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
• Offer free information or products
• Offer a free service as a way to entice customers
online for B2B
• Implement cross-selling strategy
• Ensure easy and quick navigation
• Introduce event marketing
• Enlist 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
Chapter 11
Marketing On The Internet
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