Transcript MARKETING ON THE INTERNET

MARKETING ON THE
INTERNET
• The Internet includes a number of data
networks set-up by companies and
organizations, the World Wide Web and email, plus a multitude of proprietary
networks that are gravitating to the web
» Lindgren 2000
HISTORY OF THE INTERNET
• Vannevar Bush, VP of MIT -- visionary;
appointed by Franklin Roosevelt
• Ted Nelson (1965): XANADU >had the
theoretical underpinnings of hypertext
• US Dept. of Defense: ARPANET
(Advanced Research Projects Agency
Network)>>used the TCP/IP (Transmission
Control Protocol/Internet Protocol)
HISTORY OF THE
INTERNET(2)
• NSFnet (National Science Foundation)
• 1989: Time Bernes-Lee of CERN
(European Particle Physics Lab)>>
– HTML(HyperText Markup Language)
– URL (Uniform Resource Locator)
– HTTP (Hypertext Transport Protocol)
• >>important elements of todays internet
REQUIREMENTS FOR
GROWTH OF THE INTERNET
• Electronic Commerce
– businesses have to develop electronic
commerce intranets and extranets that connect
to the internet
• Network Server Growth
– Internet hosts or Internet Service Providers
(ISP): 1000 in 1990>>>90 million in Jan, 1999
• Sufficient number of consumers must have
access to the internet
IMPROVING BUSINESS PRACTICES
USINGTHE INTERNET
• REDUCED COSTS
– FedEx>>customer service costs
– CISCO>>up to date information on products;
for frontline employees and customers
– GE>>analysis of the supply chain
– Online data versus printed information
(especially important for direct marketers)
– Market expansion is much easier, faster, and
less expensive
IMPROVING BUSINESS PRACTICES
USINGTHE INTERNET (2)
• INVENTORY REDUCTION
– implementation of Just-in-Time delivery
systems>>Amazon.com
• IMPROVED CUSTOMER SERVICE
• FedEx; CISCO; Wells Fargo Bank
• MARKET/PRODUCT DEVELOPMENT
OPPORTUNITIES
– 24 hours; global reach; small or large company
TYPES OF INTERNET SITES
• Company/Brand Sites
– info. about co. and its brands; history, mission,
financial statements; how to use products; stock
quotes
• Service Sites
– to provide customer service interface; to reduce
customer service costs
– Banks, FedEx, UPS
TYPES OF INT. SITES (2)
• Selling sites
– Amazon.com;L.L.Bean>>to actually sell
– promotional sites
– DaimlerChrysler Site>>to move potential buyer
closer to purchase
• Information sites
– revenue through subscription (WSJ);
Advertising (search engines like Yahoo); or to
express presence (CNNSI, New York Times)
BENEFITS OF INTERNET
MARKETING
• Increase presence and brand equity
• Develop prospective customer into
customer>> move toward purchase; internet
is pull oriented, not push oriented
• Improve customer service
• Information transfer>>easier to send and
collect information
• Supports direct marketing
DRAWBACKS OF INTERNET
MARKETING
• Limited target audience
– around 73 mill. users in the US (1999)
– what about others?
• Resistance to change
– concern about Internet security
– need more consumer education, warranties and
other security measures
MARKETING INSIGHTS ON
THE INTERNET
• Selling on the web is interactive
• Promotion on the web is pull-oriented
• Exchange of information is key
– two way flow
• Sites must do more than just sell
– need assessment, information, assistance, etc.
• Size and location are no longer obstacles to
success