Transcript An Internet Service Provider (ISP)

The Department of
Marketing Management
Welcomes you to a workshop on ...
Cybermarketing
as part of Unisa’s
2006 Honours Spring School
Neels Bothma
The Internet
The Internet (or sometimes just called the
Net) is a world-wide interconnected network
of computers that lets a computer in one part
of the world communicate with a computer
or computer network located somewhere
else in the world, using either an ordinary
telephone line or a special dedicated data
line.
Internet
ISP
Telephone
line
Modem
Software
Computer
The Internet
(cont.)
Internet statistics
• No. of hosts/computers +100 000 000
• No. of users
+630 000 000
• No. of users in SA
+4 million
Internet Service Providers (ISPs)
An Internet Service Provider (ISP) is a company that has a
direct, dedicated and permanent connection to the Internet.
It offers its registered clients access to the Internet by
renting out its facilities for a fee, based either on a fixed
monthly payment or an hourly rate.
NET
ISP
Getting online
THE
INTERNET
COMPANY
COMPANY WEB SITE
CONSUMERS
The Micro, Market & Macro
environments
MACRO
Socio-cultural
forces
Customers
Political/legal
forces
Interest
rates
Competitors
Inflation
Economic
forces
MARKET
MICRO
Mission
Resources
Price
Product
Promotion
Place
Suppliers
Facilitators
Infrastructure
& geography
Government
Technology
Intranets, Extranets & Internet
MACRO
Socio-cultural
forces
Customers
Political/legal
forces
Interest
rates
Economic
forces
MARKET
MICRO
Mission
Resources
Intranet
Price
Product
Promotion
Place
Internet
Competitors
Inflation
Suppliers
Government
Extranet
Facilitators
Infrastructure
& geography
Technology
The World Wide Web
The World Wide Web (which is also simply known as the Web)
is a way of looking at and organising the information on the
Internet. The web is basically a subset of the Internet and
organises information according to pages - more than 10
billion of them - that lie all over the Internet.
These pages are interlinked with each other using hypertext
(also called hyperlinks). In other words, each page is
connected to other pages, that are connected to other pages,
that in turn are connected to still more pages, and so on, much
like a spider’s web - hence the name, the Web
Web sites and web pages
Web Sites
Num ber of Web Sites
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
1996
1997
1998
1999
Year
2000
2001
Advantages of the Web
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It is a multimedia environment
It is a global environment
It is interactive
It is easy to use and intuitive
It is affordable
It is a 24-hour environment
It allows you reach to the masses
It allows you to customise for one
Large amounts of information can be easily stored
on the Web
It is a non-linear form of communication
Refer to figure 1.2 in SG
Online benefits


Business

Market development

Diversification

Market penetration

Product development
Marketing

Sales

Market communications

Customer service

Public relations

Marketing research
SG 14-17
Online benefits

(cont.)
6Cs

Cost reduction

Capability

Competitive advantage

Communications improvement

Control

Customer service management
Online benefits
(cont.)

Target marketing

Message tailoring

Interactive capabilities

Information access
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Sales potental

Creativity
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Exposure
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Speed
Internet
marketing communications

Marketspace
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Digital
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Interactive
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Deep

Global
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Non-linear
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Mass-marketing
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One-to-one
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One-to-many
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Many-to-many
Internet
marketing communications

cont.
Personal

Personalisation
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Customisation
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Pull
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Two-way communications

Communities

Control

Interface
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Shortening of the communications channel
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Disintermediation
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Reintermediation
Supporting marketing communications
with the Internet
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Multimedia enhanced communications
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Speed of communications
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24/7

Linking together different technologies (email, fax and SMS)

Direct marketing tool

E-newsletter

FAQs

Discussion forums
SG 25
Differences

Demographic differences

Cultural differences

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Techno-lusters
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Academic buffs
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Techno boffins
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Get aheads
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Hobbyists
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Knowledge
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Traders
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Business bods
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Home users
Market differences
Different ways customers
use the Internet …cont.

Directed information seekers
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Undirected information seekers
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Directed buyers
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Bargain hunters
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Entertainment seekers
SG 26-27
One-to-one marketing
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Stages
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Attracting customers to the site
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Providing information
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Capture customer information to maintian
relationship
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Maintain appropriate dialogue
Technologies
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Web page personalisation
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E-mail

Databases

Virtual communities
SG 82-83
Shaping buying behaviour

Directed information seekers
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Undirected information seekers
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Directed buyers

Bargain hunters

Entertainment seekers
SG 26-27 & TB 280-282
The Internet as an
information source
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Public versus private
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Finding information on the Internet
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Going directly to the page
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Guessing addressing
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Search engines
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Directories
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Start pages
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Portals
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Usenet

Push information services
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Surfing browsing
Advantages of using the
Internet for marketing research
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First to know
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Control of information flow
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Saves time
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Cuts costs
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Broader range of information
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Problems

Information not always accurate
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No quality control
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No consistency
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Static/noise
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US-influence
Planning online marketing research
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Decide what you need
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Formulate questions
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Spelling and grammar
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Suitable sources of information
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Search engines not the same
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Search results must be carefully evaluated
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Bookmark and print
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Organise and evaluate information obtained
Marketing & the Internet
Information
Market research
MACRO
Economic
forces
Socio-cultural
forces
MARKET
Customers
Mission
Resource
s
Price
Product
Promotio
n
Place
Political/legal
forces
Interest
rates
MICRO
Competitors
Inflation
Suppliers
Facilitators
Government
Technology
Target audience & segmentation
Product quality
Customisation &
personalisation
Branding
Customer
support
Changing supply/
value chains
Online distribution
Promotion
Infrastructure
Online advertising
& geography
E-mail marketing
Pricing
Price setting Price comparison
Strategic marketing
and the Internet

Situation review
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Goal setting
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Strategy formulation
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Planning, scheduling and monitoring

Internet marketing plan (see next slide)
SG 54
Strategic marketing
and the Internet cont.
Internet marketing plan

Potential audience

Integrating the Nets
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Scope of Internet marketing communications

Migration of brands onto the Net
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Strategic partnership and outsourcing

Organisational structure

Budgeting

Schedule (see page 57 in SG)
Figures 4.1 and 4.2
Internet marketing plan
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Potenial audience
Integrating the “Nets”
Defining scope of Internet marketing
Migration of brands onto the Internet
Strategic partnerships and outsourcing
Organisational structure
Budgeting
Scheduling
SG 55-58
Measuring Internet marketing
effectiveness

Development of measurement process (see page
59 in SG)
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Online measurement methods – see next slide
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Online measurement techniques – see next slide
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Measuring individual behaviour – see next slide
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Offline methods of metric collection
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Evaluation of promotional methods (see page 63
of SG
Online measurement
methods & techniques
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Business effectiveness measures
Measures for judging marketing effectiveness
Internet marketing effectiveness
Hits
Page impressions
Site visits
Unique visitors
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Registration
Cookies
Click-tracking
Observation
Internet marketing strategy

Internet and marketing channels
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Internet and promotion
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Online promotion techniques – see next slide
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Offline promotion techniques – see next slide
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Linking online and offline
Online and offline
promotion techniques
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Specific advertising
Publicising URL
Public relations
Direct marketing
Word of mouth
Other
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Banner advertising
E-mail
E-mail newsletters
Co-branding
Sponsorships
Reciprocal links
Affiliates
Internet marketing strategy
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Internet and pricing
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Comparing prices
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Product overheads reduced
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Competition impacts on pricing
Internet and product development

Product quality

Features and options

Style

Branding
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Packaging
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Product line
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Guarantees and waranties
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Service levels
cont.
The Internet and
relationship marketing

Relationship marketing – developing and
maintaining on-going relationships in
order to benefit from a lifetime of
association

Goals of relationship marketing

Identification

Individualism

Interaction

Integration

Integrity
The Internet and
relationship marketing
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
cont.
Four stages (SG 81-83 and TB 223-241)
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Attracting customers (new and existing)
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Proving useful content that incentivises
customer to action
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Capturing customer information
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Maintaining dialogue (online and offline)
Tools (TB 241-248)
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Web page personalisation
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Web page customisation
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Community building
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Database development and mining
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E-newsletters and e-mail
Defining e-commerce
e-Commerce is a dynamic set of technologies,
applications and management systems that
enable and manage relationships between an
enterprise, its functions and processes and
those of its customers, suppliers, value chain,
community or industry
Based on the GartnerGroup definition of e-commerce
E-commerce
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The importance of e-commerce
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Advantages of e-commerce for the organisation
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Advantages of e-commerce for customers
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Advantage of e-commerce for suppliers

E-commerce enablers

E-commerce inhibitors
See TB pages 91-92
B2C e-commerce
Transaction
Relationship
Interest
Fantasy
Learning
Cybermediaries
M-Web
ShopZone
Web
portals
Priceline
Company
Buy.com
Customers
ISPs
Internet Solution
IAfrica.com
Netactive
World Online
M-Web
Web
sites
CCH
Philips
Tools for transactional e-commerce

Tools for implementing e-commerce
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Storefront software

Customer registration
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Customer access authorisation
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Product catalogue
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Shopping cart
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Transaction facility
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Management tools
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Integration
SG 99-102
Website design
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Register domain
Select ISP
People involved
Analyse target audience
Competitor sites
Architecture
Develop content
Site design, navigation,
usability
Test, review and revise
Publish content
Promote site
See SG 51-53 & TB 265-280
Website design
cont.
Website maintenance
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Writing the content
Reviewing the content
Correcting errors
Piloting the site
Testing the site
Launching the site
Promoting the site
Responsibilities

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
Who owns the process
Who owns the content
Who owns the format
Who owns the technology
Content management
B2B e-business
Sourcing
of inputs
Marketing
of products
Contract
negotiation
Business Entity
S
B
Business Entity
B
Peers
Ordering
Supply and
invoicing
Payment
Raw
materials
S
Sourcing
of inputs
Marketing
of products
Contract
negotiation
Ordering
Supply and
invoicing
Business Entity
Payment
Conversion
process
Buying
Business Entity
B
Market
offerings
Selling
Business Entity
B
Business Entity
S
Business Entity
Inputs
B
S
S
SUPPLY
CHAIN
Distributors
Process
PROCESS
FLOW
Outputs
SUPPLY
CHAIN
Distributors
B
S
Differences between B2C &
B2B markets

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The market structure
Nature of the buying unit

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
Users
Influencers
Buyers
Deciders
Gatekeepers
Type of purchase

Low volume, high value
 One-off
 High volume, low value

Type of buying decision


Overriding contract & purchases within contract
Communication differences
See SG pages 119-120
The value chain
Raw material
supplier
Raw material
supplier
Sub-assembly
manufacturer
Component
supplier
Manufacturer
Supply of
information
Distributor
Wholesaler
Supply
of goods
Distributor
Retailer
Customer
The value chain
disintermediation
Raw material
supplier
Raw material
supplier
Sub-assembly
manufacturer
Component
supplier
Manufacturer
Distributor
Customer
The value chain
supply of information
Raw material
supplier
Raw material
supplier
Sub-assembly
manufacturer
Component
supplier
Manufacturer
Distributor
Wholesaler
Distributor
Retailer
Customer
Factors affecting increased
adoption of e-tailing

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





Accessibility – more users
necessary
Costs
Reaching new markets
Technical considerations eg
broadband
Logistics – backing up the sale
Internal inhibitors and
facilitators
Environmental inhibitors and
facilitators
Comparative advantage over
retail channels (cheap 24/7,
quick, everywhere)
SG 116-117 & TB 420-421
The future of the Internet





Digital brokers, software agents
Convergence
Broadband
Future adoption of the Internet
Ethical issues (see TB pages 87-96)

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Privacy and trust
Accuracy
Accessibility
Transparency (who is collecting the
information)
Liability
ECT Bill - http://www.acts.co.za/ect_act/
Usenet
During the course of the development of the Internet,
another useful facility was created whereby users in
different parts of the world could participate in ‘electronic
discussion groups’ about a variety of subjects.
These discussion groups, also called newsgroups, are
collectively known as the USENET, have become
extremely popular, with more than 50 000 such groups
existing today. Participants find these discussion groups
useful because they can ask questions, make statements,
find information, solve problems and generally share
information with other
users with similar interests.
Usenet
(cont.)
Distributing your product on the Net
PR and publicity
Disseminating information
Customer support
Online banking EFT
Value-added services
Transacting sales
Company web sites
Exam format

6 x 25 mark questions

Answer any 4 (four) questions

Questions may have sub sections

There will be a mini case study
That’s all folks!
That’s all for today!
Enjoy the rest of your summer school
and good luck with the exams