Transcript Marketing & the Internet

Marketing in the Digital Age
Marketing in the Digital Age
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Definition of e-Marketing
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Creating, distributing, promoting and pricing
products for customers using electronic means
Marketing in the Digital Age
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Electronic means of doing business
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Use the Internet
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Definition
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Why do consumers use the Internet?
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Global collection of computer networks linked together for
the purposes of exchanging information
Gathering of information
Being entertained
Doing business (completing transactions)
Effective web sites assist consumers in doing all 3
functions
Marketing in the Digital Age
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Electronic means of doing business
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The World Wide Web
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The user friendly Internet access standard
Allows “surfing” of the Internet, sending/receiving of email, etc.
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WWW allows consumers to use the Internet to perform the
3 functions described earlier
 Allows “on-line” marketing
Marketing in the Digital Age
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Example – “Baby Gap”
website
Marketing in the Digital Age
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On-Line marketing
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Marketing conducted via interactive computer
systems which link buyers and sellers
Typically buyers and sellers are linked in an
electronic marketplace
Marketing in the Digital Age
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On-Line marketing
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On-line consumers
 Very similar to consumers as a whole
 Perhaps a bit younger, more affluent, & better
educated
 Large percentage of “net-geners”
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Kids, teenagers, and college students who know more
about the web than their parents
Feel empowered – feel they have greater control over
information and shopping
Marketing in the Digital Age
Marketing in the Digital Age
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Creating an on-line presence
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Corporate Web site
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Builds customer goodwill and supplements other sales
channels
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www.candystand.com is the Lifesavers web site that
features 27 interactive games and promotional information
about the 11 Lifesavers brands
Marketing Web site
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Engage consumers in an interaction that will move them
closer to engaging in exchange
www.amazon.com allows purchases on line
Marketing in the Digital Age
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www.amazon.com
Marketing in the Digital Age
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Creating an on-line presence
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On-line ads
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Ads that appear while consumers are surfing the web or
websites
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Banners – “electronic billboards” – small ads displayed
across the top of a web page
Pop-up windows – windows of web information emerge as
customers are on the web
Tickers – banners that move across a computer screen
Roadblocks – full screen ads that users must pass through
to get to other screens
Ad effectiveness? Don’t really know, yet!
Marketing in the Digital Age
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Creating an on-line presence
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Forums, bulletin board systems, and web
communities
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Companies may participate in these or sponsor one or
more
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Forum – discussion groups which take place on line
Bulletin board systems – specialized on-line discussion
areas on certain topics (wise for firms to monitor them)
Web community – members-only forums or bulletin boards
that are commercially sponsored (e.g., Harley user-group
discussion page)
Marketing in the Digital Age
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Creating an on-line presence
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E-mailing and/or web casting
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E-mailing – sending out of e-mails to a targeted list of
customers
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3Com sent out over 1M e-mails about their high-tech
equipment and received over 22,000 leads
Web casting – automatic downloading of customized
information to recipients computers
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“Push” marketing – AOL customers get specialized
information (depending on their application information)
which appears when C’s sign on to the service
Marketing in the Digital Age
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Challenges of on-line marketing
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Limited customer exposure
Limited customer buying on-line
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Security concerns
“Hidden” costs
Perceptions of clutter
Customer concerns with security
Customer concerns with privacy
Measurement of success
Marketing in the Digital Age
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Relationship marketing – process of creating,
maintaining, and enhancing strong, valueladen relationships with customers
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Rule of thumb – cost 10 times more to get a new
customer than to keep an existing one
Dimensions
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Bonding – mutual interests exist
Empathy – ability to take the Cs perspective
Reciprocity – give and take
Trust – Cs confidence in the seller
Marketing in the Digital Age
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UBS attempts to
develop customer
relationships
Marketing in the Digital Age
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Relationship marketing
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Key is to strive for customer satisfaction
Database marketing
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Marketing database – organized collection of
comprehensive data about individual customers or
prospects
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Geographic, demographic, etc.
Uses
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Identify prospects – build a database from some type of
customer response
Marketing in the Digital Age
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Database marketing
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Uses
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Identification of “ideal” customers – database (when
analyzed) may yield information about prospective
customers
Deepening customer loyalty – if you have information on
customer preferences, you can send them appropriate
information (e.g., Amazon.com; Roadrunnersports.com)
Reactivating customer purchases – make attractive
product replacement offers (e.g., Roadrunner.com)
Effective for B-to-B marketers
Marketing in the Digital Age
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Database marketing
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B-to-B marketers