Transcript Chapter 11 Marketing On Internet

Chapter 11
Marketing On Internet
Day 17
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Day 17 Agenda
• Assignment #5 corrected
– 2 A’s, 5 B’s, 1 C and 1 F
• Quiz 3 will be on April 6
– Chap 8-12
– 15 M/C (60 Points), 4 Short Essay (40 Points)
– Extra credit --- What is the derivation of the name
“cookie” used by Internet Browsers?
• Assignment #6 on next slide
• Start discussion on E-marketing
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Assignment #6
• Only two more to Go!
• Two to Four page paper on the Pros and Cons on
SPAM (mass e-mails not the mystery meat in the
can)
– 12 point typeface double spaced
– Cite at least two references (magazines, newspaper or
book ~not Web)
• One pro
• One con
– In conclusion, give your opinion on SPAM
– Due March 30 at beginning of class
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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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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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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
– Impact to stock market?
• Sell goods
• Answer important questions
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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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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 Emails to
Past Customers
Specialized email to
users requesting
periodic information
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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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Marketing on Internet: Internet Marketing Techniques
FORMULA (Cont’d)
Whereby
• Price = How expensive 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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© 2002 Prentice Hall
Day 18 Agenda
• Assignment #6 Due Next Class
• Quiz 3 will be on April 6
– Chap 8-12
– 15 M/C (60 Points), 4 Short Essay (40 Points)
– Extra credit --- What is the derivation of the
name “cookie” used by Internet Browsers?
• Assignment #6 on next slide
• Start discussion on E-marketing
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Aggressive Marketing Techniques
• Spam
– Assignment question
• Pop-ups
– Between Jan and July 2002 11.3 billion popup ads
appeared on the internet
– 687 million from Orbitz.com
– One billion from X10 Wireless
• 32.8 % reach based on pop-up advertising alone
• ISP’s make extra revenue blocking Pops-up
– (and sometimes by creating them)
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© 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
Customer Personalization
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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
• Resources
– SBA www.sba.gov
– SCORE www.score.org
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Awad –Electronic Commerce 1/e
© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
PRODUCT & PRICING
• Product
– Emphasize on viability, quality & integrity
– Physical vs. Service
• Pricing
– Frequent purchase plans
– On-line auctions
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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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© 2002 Prentice Hall
Marketing on Internet: E-Cycle of Internet Marketing
PROMOTION
• AIDA
– Attention, interest, desire, and action
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Get prospective visitors’ attention
Create interests in a product
Build a desire in the product
Banners
– Internet ads
– Cheap & fit traditional ad-agency formula
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© 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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© 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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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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© 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 emails to contact registered customers
• Use news groups and mailing lists
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© 2002 Prentice Hall
Marketing on Internet: Attracting Customers to Site
ATTRACTING CUSTOMERS
TO SITE
• Keeping site content current
• Offering free information or products
• Offer a free service as a way to entice customers
online for B2B
• Implementing cross-selling strategy
• Ensuring easy and quick navigation
• Introducing event marketing
• Enlisting affiliates
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© 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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© 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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© 2002 Prentice Hall