Internet Marketing Concepts

1
Internet Marketing Concepts

• Week 2

2
Objectives

• The new communication medium
• The Internet and the marketing mix
• Key elements of effective web site designs
• Internet marketing versus conventional marketing

3
The Internet as a New Communication Medium

• Digital, interactive, and a greater depth of
  information can be published
• Demographics may be different
• Culture of purchasers may be different
• Markets may be different

4
The Digital Medium of the Internet

• Predominantly a pull medium
• Enables interaction
• Potential for one-to-one or many-to-many
  communication
• The medium changes the nature of advertising
• Changes to the distribution channel and
  marketplace enabled by the digital media

5
Communication Using the Internet
C5
O
C1
C4
O
M
Content
M
Content
Content
C2
Internet Medium
M
M
M
M
Content
O
O
C3
O
6
The Communication Model
N O I S E
Receiver (web browser) Message decoding
Source (web site) Message encoding
Site content or e-mail
Feedback (transaction log file)
7
Cultural Difference

• Uses of the Internet in the UK (1998) includes
• Sending email (72 )
• Research (63)
• Education (58)
• Seeking information on products and services
  (53)
• Hobbies and interests (53)
• Games playing (32)
• Planning holidays (24)
• Web reference NOP Research Group
  (www.nopres.co.uk)

8
In Europe and the USA

• Average age of user is 35.7 years old
• 38.5 female and 61.5 male (22, 72 Europe)
• 65 access the Web from home (29 Europe)
• Average household income 53,000
• Web reference KPMG (www.kpmg.co.uk), GVU
  (www.gvu.gatech.edu/user_surveys)

9
Cultural Difference

• Techno_lusters focused in the culture and
  technology
• Academic buffs originally on of the main types
  of users
• Techno-boffins similar to the techno-lusters,
  but make more directed use of the technology for
  business
• Get aheads use the Internet as a lifestyle
  accessory, use email and Internet for product
  selection
• Hobbyists people with specialist interests who
  use the Internet for purchase selection
  (golfers)
• Knowledge traders business oriented users who
  turn to the Internet for news services and
  information on best business practice
• Business bods general business users in
  management roles
• Home users members or families looking for
  education or purchases

10
Internet and Marketing Mix
Using the Internet to vary the marketing mix

• Product
• Quality
• Image
• Branding
• Features
• Variants
• Mix
• Support
• Customer service
• Use occasion
• Availability
• Warranties

• Price
• Positioning
• List
• Discounts
• Credit
• Payment methods
• Free or value-added elements

• Promotion
• Marketing communications
• Personal promotion
• Sales promotion
• PR
• Branding
• Direct marketing

• Processes
• Customer focus
• Business-led
• IT-supported
• Design features
• Research and development

• People
• Individuals on marketing activities
• Individuals on customer contact
• Recruitment
• Culture/image
• Training and skills
• Remunera-tion

• Place
• Trade channels
• Sales support
• Channel number
• Segmented channels

11
The buying Process on the Internet
Stages in buying process
Internet marketing techniques
Communications objectives
Generate awareness
Banner advertising, PR, links Web site
content (Plus search support) Search
engines, Intermediaries Web site
content, Intermediaries Web site
content Personalized web Site content and
interaction
1. Unaware
2. Aware of product need, develop specification
Position Features, benefits and brands
Lead generation (from range of customers)
3. Suppliers search
4. Evaluate and select
Assist purchase decision
5. Purchase
Facilitate purchase
6. Post-purchase evaluation and feedback
Support use and retain business
12
Key Elements of Effective Web Site Design

• Capture
• Content
• Community
• Commerce
• Customer orientation
• Credibility

13
Alternative Factors

• Attract users
• Engage users interest and participation
• Retain users and ensure that they return to the
  site
• Learn about customer preference
• Relate back to customers with customized
  interactions

14
Internet Marketing vs Conventional Marketing

• It is a many-to-many medium
• Consumers can interact with the medium
• Consumers can provide commercially oriented
  content to the medium