Transcript Introduction to Internet Marketing

DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
1
INTRODUCTION TO
INTERNET MARKETING
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Introduction to Internet Marketing —
Today’s Objectives
 Objectives
 Define
 Explore
will be to:
the scope of Internet marketing
the stages of Internet marketing
 Discuss
the relationship stages and the
Marketspace Matrix
 Examine
guidelines for success
 Outline
the progression of the book
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Introduction to Internet
Marketing
 Definition
 Seven-Stage
and Scope of Internet Marketing
Cycle of Internet Marketing
 Four
Key Relationship Stages and the Marketspace
Matrix
 Guidelines
 Overview
for Internet Marketing Success
of the Book
 Conclusion
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Internet Marketing — History
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Internet Marketing — History
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Introduction to Internet
Marketing
 Definition
 Seven-Stage
and Scope of Internet Marketing
Cycle of Internet Marketing
 Four
Key Relationship Stages and the Marketspace
Matrix
 Guidelines
 Overview
for Internet Marketing Success
of the Book
 Conclusion
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Definition and Scope of
Internet Marketing
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Assessing the Impact of
Internet Marketing
Marketing Resource Allocation
Bricks-and- Mortar
Location of Revenue Stream
Offline
Online
Cell 4
Cell 2
Cell 3
Cell 1
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Introduction to Internet
Marketing
 Definition
and Scope of Internet Marketing
 Seven-Stage
Cycle of Internet Marketing
 Four
Key Relationship Stages and the Marketspace
Matrix
 Guidelines
 Overview
for Internet Marketing Success
of the Book
 Conclusion
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
The Seven-Stage Cycle of
Internet Marketing
Step 2
Formulating the
Marketing Strategy
Step 3
Designing the
Customer
Experience
Step 1
Framing the
Market
Opportunity
Step 4
Crafting the
Customer
Interface
Step 7
Evaluating
the
Marketing
Program
Step 6
Leveraging Customer
Information Through
Technology
Step 5
Designing the
Marketing Program
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Framework for Market
Opportunity
Seed Opportunity in Existing New Value System
Identify Unmet and Underserved Need(s)
Identify Target Segment(s)
Declare Company’s Resource-Based
Opportunity for Advantage
Assess Competitive, Technological, and Financial
Opportunity Attractiveness
Make “Go / No-Go” Assessment
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Framework for Market Opportunity
Microsoft CarPoint Example
Leverage the Internet to Improve the
Consumer Car-Buying Process
Car Buyers Are Dissatisfied With Current
Retail Car-Buying Process
Shoppers Who Feel Intimidated by Sales
People and Look for More Efficient Way
Microsoft’s Software and Free Placement on
All Its Websites
How Big Is the Online Car-Buying Market?
Who Are CarPoint’s Main Competitors?
Make “Go / No-Go” Assessment
• MSN CarPoint identified an opportunity to leverage the Internet to
deliver customer value in the car industry
• The retail car-buying process was frustrating and inefficient:
• Little information available to the consumer
• Bargaining with salesperson viewed as an hassle
• Long process overall
• MSN CarPoint selected two primary target segments for its service:
• “The intimidated by the process”
• “The information seekers”
• MSN CarPoint could leverage Microsoft’s expertise in software
development, its brand name and its multitude of online properties
• Competition was getting fierce with more and more online car services
entering the market…
• But the financial opportunity was large: 66% of new car buyers were
estimated to use online services in 2000
• In 1996, the first version of CarPoint was shipped
• By 1998, CarPoint was driving $5 million in car sales a day
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Corporate, Business-Unit and
Marketing
Strategy
Linkages
Example
Corporate Strategy
Amazon
Business Unit Strategy
Tools and Hardware
Integrated Marketing
Strategy for Unit
Integrated Marketing
Strategy for Tools and
Hardware Unit
Internet
Marketing
Traditional
Marketing
Online
Marketing Mix
Offline
Marketing Mix
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Introduction to Internet
Marketing
 Definition
 Seven-Stage
and Scope of Internet Marketing
Cycle of Internet Marketing
 Four
Key Relationship Stages and the Marketspace
Matrix
 Guidelines
 Overview
for Internet Marketing Success
of the Book
 Conclusion
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
The Four Key Stages of Customer
Relationship
Four Key Stages of Customer Relationship
Awareness
Exploration /
Expansion
Commitment
Dissolution
DEPARTMENT OF BUSINESS ADMINISTRATION
Four Key Stages of Customer
Relationship by Level of Intensity
Level of
Intensity
INSTRUCTOR : JIGJID.SH
Intensity
Awareness
Exploration
Commitment
Dissolution
Stages of Customer Relationships
DEPARTMENT OF BUSINESS ADMINISTRATION
Internet Marketing Mix
INSTRUCTOR : JIGJID.SH
Branding
Product
Pricing
Communication
Community
Distribution
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Impact of the 2Is on the
Internet Marketing Mix
Interactivity
Branding
Product
Pricing
Communication
Individual
Community
Distribution
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
The Marketspace Matrix
Relationship Stages
Awareness
Exploration
Commitment
Dissolution
Categories of Levers
Product
Price
The 2Is should influence
the design of each cell in
the matrix
Communication
Community
Distribution
Branding
Branding can also
accentuate (or lessen)
the impact of the levers
in each cell
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Introduction to Internet
Marketing
 Definition
 Seven-Stage
and Scope of Internet Marketing
Cycle of Internet Marketing
 Four
Key Relationship Stages and the Marketspace
Matrix
 Guidelines
 Overview
for Internet Marketing Success
of the Book
 Conclusion
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Critical Success Factors for
Internet Marketing Executives

The willingness to understand customer needs and provide
added value to each customer interaction

The ability to have a holistic view of the customer and the
enterprise in order to create
a uniquely advantaged strategic plan

Being able to understand the dynamic tension between one-toone marketing and mass marketing and being able to strike a
strategic balance between them

The willingness to change the status quo, take chances and use
“bleeding edge” tools to lead teams to success

The ability to manage marketing campaigns in a more uncertain,
dynamic environment, with a new set of tools that often have few
records of successes, failures or best-practices
Customer Advocacy and Insight
Integration
Balanced Thinking
Passion and
Entrepreneurial Spirit
Willingness to Accept
Risk and Ambiguity
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
The New Rules of Marketing for the
Global Digital World
The
New Rules
1. Target segments of one, and create virtual communities
2. Design for customer-led positioning
3. Expand the role of branding in the global portfolio
4. Leverage consumers as coproducers through customization
5. Use creative pricing in the Priceline.com world
6. Create anytime/anyplace distribution and integrated supply
chains
7. Redesign advertising as interactive and integrated marketing,
communication, education and entertainment
8. Reinvent marketing research and modeling as knowledge creation
and dissemination
9. Use adaptive experimentation
10. Redesign the strategy process and supporting organizational
architecture
Source: Wind, Jerry and Vijay Mahajan. Digital Marketing. New York: John Wiley and Sons, p.8.
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Point-Counterpoint: New Rules
or Old Rules of Marketing
Point-Counterpoint
New Rules
basic conceptual and process
changes occur in online marketing
Old Rules
Several
Differences
One
Segmentation
There
From
such change is the increased ability
to deliver on the promise of one-to-one
marketing
is also a fundamental shift to a
more consumer-driven and controlled
world — for example, a shift towards
pull-marketing and the use of more
“pull” levers, such as online community
in the online marketing world
are overstated
is still at the core of
marketing — “clusters” of consumers will
emerge that share behavior
the supply side, it is most efficient
to aggregate these consumers to reduce
costs
Successful
marketing programs include
mixing different marketing levers, both
new and old: the “master-mixer” concept
still remains
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Introduction to Internet
Marketing
 Definition
 Seven-Stage
and Scope of Internet Marketing
Cycle of Internet Marketing
 Four
Key Relationship Stages and the Marketspace
Matrix
 Guidelines
 Overview
for Internet Marketing Success
of the Book
 Conclusion
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Overview of the Chapters
1. Framing the
Market
Opportunity
4. Crafting the
Customer
Interface









2. Formulating
the Market
Strategy
5. Designing the
Marketing
Program
3. Designing the
Customer
Experience
6. Leveraging
Customer
Information
through
Technology
7. Evaluating
the Marketing
Program
Customer Relationships
Product
Pricing
Communication
Community
Distribution
Branding
Designing the Marketspace Matrix
Illustration: Marketing Campaign for The Lord of the Rings: The Fellowship of the Ring
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Introduction to Internet
Marketing
 Definition
 Seven-Stage
and Scope of Internet Marketing
Cycle of Internet Marketing
 Four
Key Relationship Stages and the Marketspace
Matrix
 Guidelines
 Overview
for Internet Marketing Success
of the Book
 Conclusion
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTRUCTOR : JIGJID.SH
Introduction to Internet Marketing —
Conclusion
 Traditional
marketing methods are still highly relevant
in the
networked economy, though firms must now consider a host
of new and innovative marketing methods available online
(e.g., dynamic pricing, online community)
 In
contrast to the one-way mass promotion that
characterizes modern marketing, Internet marketing
enables firms to engage the individual in personalized
dialogues
 Individualization
and Interactivity are two forces that
make online marketing different
 Marketing,
and the relationships it creates, should be
considered in the context of particular processes and