Transcript Introducing the scope of Internet Marketing

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Chapter 1
Introducing
Internet
Marketing
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Learning objectives
• Evaluate the relevance of the Internet to the customercentric, multi-channel marketing concept
• Distinguish between Internet marketing, e-marketing,
digital marketing, e-commerce and e-business
• Evaluate the advantages and challenges of digital media
• Identify the key differences between Internet marketing
and traditional marketing
• Assess how the Internet can be used in different
marketing functions
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Questions for marketers
• How significant is the Internet as a marketing
tool?
• How does Internet marketing relate to emarketing, e-commerce and e-business?
• What are the key benefits of Internet marketing?
• What differences does the Internet introduce in
relation to existing marketing communications
models?
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Online Opportunities
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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More recent opportunities
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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1.1
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Warning
• Which definition is used isn’t so important, within
a company definitions help:
– Scope the Internet Marketing activities that need to be
managed
– Explain opportunities for new marketing approaches –
digital transformation
– Highlights some risks to be managed
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Introducing the scope of Internet
Marketing
• “Achieving marketing objectives through
applying digital technologies”
– How?
• Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitably.
Chartered Institute of Marketing
– How?
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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A more in-depth definition
• Customer-centric digital marketing involves:
• Applying…
•
Digital technologies which form online channels…
(Web, e-mail, databases, mobile, iDTV)
• to…
•
Contribute to marketing activities aimed at achieving
profitable acquisition and retention of customers
(within a multi-channel buying process
and customer lifecycle)
• through…
•
Improving customer knowledge (of their profiles,
behaviour, value and loyalty drivers), then delivering
integrated targeted communications and online
services that match their individual needs
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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How does the Internet contribute to
marketing?
• The definition of marketing by the Chartered Institute
of Marketing (http://www.cim.co.uk/) is:
• Marketing is the management process responsible
for identifying, anticipating and satisfying customer
requirements profitability
Give examples of how the Internet (web and e-mail)
achieves these?
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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How the Internet supports marketing
• Identifying – the Internet can be used for marketing research to find
out customers’ needs and wants (Chapters 7 and 10).
• Anticipating – the Internet provides an additional channel by which
customers can access information and make purchases – evaluating
this demand is key to governing resource allocation to e-marketing
as explained in Chapters 2, 3 and 4.
• Satisfying – a key success factor in e-marketing is achieving
customer satisfaction through the electronic channel, which raises
issues such as: is the site easy to use, does it perform adequately,
what is the standard of associated customer service and how are
physical products dispatched? These issues of customer
relationship management are discussed further in Chapters 6 and 7.
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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P.1.
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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1.2
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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1.3
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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1.4
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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E-business and e-commerce
• You are attending an interview for a job in an Ecommerce department. You are asked to:…
• Define e-commerce
–
• Explain the relationship between e-commerce and ebusiness?
–
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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1.5
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Why is a digital strategy needed?
• To set clear goals for digital channels
• To align with business strategy (avoid ad-hoc
approaches)
• Create a specific online value proposition (OVP)
• Specify communications tools to drive visitors
• Integrate digital and traditional channels
• Manage customer lifecycle (e.g. through email
marketing)
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Applications of digital marketing
•
•
•
•
•
•
•
An advertising medium
A direct-response medium
A platform for sales transactions
A lead-generation method
A distribution channel
A customer service mechanism
A relationship-building medium
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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1.6
Figure 1.6 North West Supplies Ltd site(www.northwestsupplies.co.uk)
Source: Opportunity Wales
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Figure 1.7 Summary and examples of transaction alternatives between businesses,
consumers and governmental organisations
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Different forms of web presence
• 1. Transactional e-commerce site:
– Examples – Amazon, Dell
• 2. Services-oriented/relationship building
– Accenture, British Gas
• 3. Brand Building site
– Tango, Guinness
• 4. Portal or media site
– Yahoo! Silicon.com
• 5. Social network or media site
• Note that these types overlap
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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1.8
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Figure 1.9 Six categories of e-communications tools or media channels (Chaffey and Smith, 2008)
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Explanation of tools
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Figure 1.10 Nick Robertson on FT.com video
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Figure 1.11 Summary of communication models for (a) traditional media,
(b) new media
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Figure 1.12 Summary of degree of individualisation for: (a) traditional media (same message), (b) new media (unique
messages and more information exchange between customers
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Figure 1.13 Channels requiring integration as part of integrated e-marketing strategy
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Figure 1.14 The role of mixed-mode buying in Internet marketing
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Figure 1.15 Travel Republic (www.travelrepublic.co.uk)
Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009
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Chaffey, Internet Marketing 4th Edition, © Pearson Education Limited 2009