Transcript Document

CHAPTER 2
The Internet micro-environment
OHT 2.1
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Learning objectives
• Identify the different elements of the
Internet environment that impact on an
organisation’s Internet marketing strategy;
• assess competitor, customer and
intermediary use of the Internet;
• evaluate the relevance of changes in
trading patterns and business models
enabled by e-commerce.
OHT 2.2
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Questions for marketers
• How are the competitive forces and value
chain changed by the Internet?
• How do I assess the demand for Internet
services from customers?
• How do I compare our online marketing
with that of competitors?
• What is the relevance of the new
intermediaries?
OHT 2.3
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
The Internet marketing environment
Figure: The Internet marketing environment
OHT 2.4
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Porter’s five forces
Bargaining
powersof
customers
Powerof
suppliers
Extentofrivalry
between
competitors
OHT 2.5
Threatof
subsitutes
Thebusiness
Threatofnew
entrants
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Alternative models of
the value chain
Figure 2.2 Two alternative models of the value chain: (a) traditional value chain
model, (b) revised value chain model
OHT 2.6
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
A value network
Figure: Members of the value network of an organisation
Source: Adapted from Deise et al. (2000)
OHT 2.7
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Disintermediation
Figure: Disintermediation of a consumer distribution channel showing:
(a) the original situation, (b) disintermediation omitting the wholesaler, and
(c) disintermediation omitting both wholesaler and retailer
OHT 2.8
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Example – Vauxhall
OHT 2.9
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Reintermediation
Figure: Reintermediation process: (a) original situation, (b) reintermediation contacts
OHT 2.10
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Example - Priceline
OHT 2.11
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Assessing demand
•
Need to assess:
1. Access to Internet
2. Proportion of customers influenced by
channel
3. Proportion of customers who buy direct
OHT 2.12
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Global population
with Internet access
Figure: Percentage of global population with Internet access
(based on Nua and Cyberatlas compilations at www.nua.ie/surveys and www.cyberatlas.com)
OHT 2.13
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Global variation in Internet access
Figure: Global variation in number of PCs per hundred population and percent Internet
access in 2000
Source: ITU (www.itu.int)
OHT 2.14
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
UK adoption of different media
Figure: UK rate of adoption of different new media, base c. 4000 GB adults aged 15+ ( 2001)
Source: e MORI Technology Tracker, January 2002. See http://www.e-mori.co.uk/tracker.shtml for details
OHT 2.15
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Internet user demographics
Figure: Summary of current demographic characteristics of Internet users, base 1673 GB
Internet users aged 15+, January 2002
Source: e MORI Technology Tracker, January 2002. See http://www.e-mori.co.uk/tracker.shtml for details
OHT 2.16
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Variations in access to new media – social group
Figure 2.16 Summary of variation in different access to new media according to
social group, base 4222 GB adults aged 15+, January 2002
Source: e MORI Technology Tracker, January 2002. See http://www.e-mori.co.uk/tracker.shtml for details
OHT 2.17
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Different types of
Internet access location
Figure 2.17 Different types of Internet access location
Source: The Internet Monitor, BMRB, www.bmrb.co.uk
OHT 2.18
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
A pyschographic
segmentation
Figure 2.18 Psychographic segmentation for Web users
Source: Netpoll (www.netpoll.net)
OHT 2.19
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Percentage of online
shoppers by product category
Figure 2.19 Percentage of online purchasers by product category
Note: There are 9.9 million online shoppers (54% of Internet users aged 15+)
Source: The Internet Monitor, BMRB, November 2001 (www.bmrb.co.uk)
OHT 2.20
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Percentage of
businesses with Internet access
Figure 2.20 Percentage of businesses with Internet access
Note that results are weighted by business size and that some countries are included for different years
Source: DTI, 2001
OHT 2.21
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Businesses that
identify suppliers online
Figure 2.21 Percentage of businesses that identify suppliers online by business
size
Source: DTI, 2001
OHT 2.22
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Hitwise competitive ranking
OHT 2.23
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
Intermediaries
Table 2.5 The most visited sites in the UK
OHT 2.24
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003