Transcript Viral Marketing - Department of Information Technologies

Business / Marketing Minor
Marketing Fundamentals
M21439
Session 10:
Changes & Innovations
Key Concepts
• The role of the internet
• E-marketing
• E-mail
• Viral marketing
• iTV marketing
• Ethical issues
• Social responsibility
The Internet (Porter)
• Does not change the fundamentals of doing
‘good business’ or ‘good marketing’.
• Important to keep core strategic objectives in
mind and use the Internet to achieve these
objectives.
• Must not view Internet applications as a
diversification, separate from the core objectives
- if you do you will fail.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
New Marketing Communications Media
• E-mail marketing.
• Viral marketing.
• Wireless marketing (m-marketing or mobile
marketing).
• Interactive television (iTV)
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
Nature of Internet Marketing
•
PR - reinforcing the company image and dissemination
of information.
•
Sales promotion - offering competitions and ‘freebies’.
•
Brochureware.
•
Direct selling.
•
Customer relationship marketing.
•
Market research.
•
Managing supplier relationships.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
The 5Ss - Benefits of E-marketing
(Smith & Chaffey 2001)
• Selling goods and services online.
•
Additional customer service.
• Saving overhead costs.
•
Means of speaking and entering into one to one
dialogue with customers.
•
Exciting and sizzling means of visual impact.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
Benefits of E-marketing
• Valuable means of small businesses
communicating with global audiences.
• Useful way for non-profit organisations to
explain their work and tout for donations.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
Good Website Design
According to Gaudin 2002:
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Must be continually updated.
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Be easy to navigate.
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Have in depth information.
•
Offer quick loading and response times.
Other researchers have found honesty, respect, trust and
reliability to be of importance.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
Consumer Penetration & Spending
Source: Euromonitor (2002), extracted from Table 12.7, p. 286. In Brassington,F. & Pettitt,S. (2003)
Principles of Marketing 3rd ed. UK:Prentice Hall
Spending Online
Consumers:
•
BMRB report that in 2002 565 of UK Internet users are
shopping online.
•
UK consumers appear to be spending more online than
other European consumers.
B2B:
•
Estimated $4.3 trillion spend by 2005 (IDC).
•
Convenience, cost saving, customer and competitor
pressure, opportunities to generate new revenue are all
reasons for growth.
•
Online procurement - a large part of B2B online
commerce.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
Advantages of Using the Web as a
Distribution Channel
•
Every hit could gain a potential customer.
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Print and mailing costs are lower.
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Reduction in order processing and handling costs.
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Enhanced after sales service.
•
Distribution of digital products via the web.
•
Get closer to the customer through disintermediation.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
The Web as an Advertising Medium
Source: Adapted from Integrated Marketing Communications, Financial Times Prentice-Hall, (Pickton, D. and Broderick, A.
2001), Copyright © 2001 David Pickton and Amanda Broderick, reprinted by permission of Pearson Education Limited.
Extracted from Exhibit 11.3, p. 210.
The Web as an Advertising Medium
Source: Adapted from Integrated Marketing Communications, Financial Times Prentice-Hall, (Pickton, D. and Broderick, A.
2001), Copyright © 2001 David Pickton and Amanda Broderick, reprinted by permission of Pearson Education Limited.
Extracted from Exhibit 11.3, p. 210.
Engendering Customer Loyalty
•
Levels of interaction between customer and an
organisation and its brand(s) can help reinforce loyalty.
•
Brand values and image can be enhanced.
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Providing a trusted quality product online.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
The Future for Internet Marketing
•
Bandwidth increases enabling more powerful
applications and real time communications.
•
More integrated technologies (TV, PCs, mobile based
technologies) making the internet more interesting and
more accessible.
•
Infomediaries who will replace traditional intermediaries.
•
Opportunities to attract transient trade.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
Marketing and New Media
Digital technology:
- Enabling marketing to be driven by databases that can
track interactions between a business and its
customers.
- Creating new media opportunities to personalise and
target messages better.
- Customers have to opt in to new media and give
permission.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
E- Mail
•
A powerful means of communication and promotional
activity.
•
Can help create initial contact and develop online
relationship once transactions have taken place.
•
Encourage readers to look at a website.
•
Gain permission to send more information.
•
Surveys suggest that e-mail campaigns are still in
infancy.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
E-mail Marketing Evolution
Source: Rizzi (2001). Copyright © 2002 e-Dialog Inc. In Brassington,F. & Pettitt,S. (2003)
Principles of Marketing 3rd ed. UK:Prentice Hall
Viral Marketing
•
Word of mouth e-mail.
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Achieved by using the forwarding facility (e-mail a page
to a friend).
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Effective form of communication in terms of believability
and trust.
•
Can build up e-mailing list.
•
Some customers may view this as a form of unsolicited
mail.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
Wireless Marketing
•
Sometimes called m-marketing or mobile marketing.
•
Using text messaging as a means of targeting
customers.
•
Marketers must consider customer lifestyles and be
careful about setting the right tone of the
communication.
•
Any message must be short usually alerting customer to
a special offer or promotion.
•
Can fail to inspire or encourage interactivity.
•
Audience tend to be younger people.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
iTV Marketing
•
Interactive television marketing is still in its infancy.
•
Allows the user to tailor information, content and actions
to their needs.
•
Provides two way communication between consumer
and service provider.
•
Take up of digital television is a critical factor here.
•
Marketers can target niche audiences and can
personalise dialogue.
Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall
Marketing Ethics
• The Nature of Marketing Ethics
– Marketing Ethics Defined
– Marketing Ethics Are Controversial
• Understanding the Ethical Decision-Making
Process
– Individual Factors
– Organizational Relationships
– Opportunity
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
Factors That Influence the Ethical
Decision-making Process
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
Ethical Issues
• Ethical Issues in Marketing
– Product Issues
– Promotion Issues
– Pricing Issues
– Distribution Issues
• Improving Ethical Decisions In Marketing
– Codes of Ethics
– Controlling Unethical Behaviour
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
The Pyramid of
Corporate Social
Responsibility
Source: Reprinted from Business Horizons, July/August 1991. Copyright © 1991 by the Foundation for the School of
Business at Indiana University. Used with permission.
Social Responsibility
• The Nature of Social Responsibility
(continued)
– Impact of Social Responsibility on
Marketing
– Social Responsibility Issues
• Consumer Movement
• Community Relations
• Green Marketing
• Diversity
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
Social Responsibility
• The Nature of Social Responsibility
(continued)
– Strategies for Dealing with Social
Responsibility Issues
• Reaction Strategy
• Defence Strategy
• Accommodation Strategy
• Proactive Strategy
• Social Responsibility and Marketing Ethics
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin