Welcomes you to a workshop on ...

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The Department of Marketing Management
Welcomes you to a workshop on ... Cybermarketing
as part of Unisas 2006 Honours Spring School
Neels Bothma
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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.

Software
Computer
Modem
Telephone line
Internet
ISP
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The Internet (cont.)
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Internet statistics

• No. of hosts/computers 100 000 000
• No. of users 630 000 000
• No. of users in SA 4 million

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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
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Getting online
THE INTERNET
CONSUMERS
COMPANY WEB SITE
COMPANY
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The Micro, Market Macroenvironments
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Intranets, Extranets Internet
Intranet
Extranet
Internet
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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 spiders web - hence the name, the Web

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Web sites and web pages
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Advantages of the Web
Refer to figure 1.2 in SG
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Online benefits

• Business
• Market development
• Diversification
• Market penetration
• Product development
• Marketing
• Sales
• Market communications
• Customer service
• Public relations
• Marketing research

SG 14-17
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Online benefits (cont.)

• 6Cs
• Cost reduction
• Capability
• Competitive advantage
• Communications improvement
• Control
• Customer service management

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Online benefits (cont.)

• Target marketing
• Message tailoring
• Interactive capabilities
• Information access
• Sales potental
• Creativity
• Exposure
• Speed

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Internet marketing communications

• Marketspace
• Digital
• Interactive
• Deep
• Global
• Non-linear
• Mass-marketing
• One-to-one
• One-to-many
• Many-to-many

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Internet marketing communications cont.

• Personal
• Personalisation
• Customisation
• Pull
• Two-way communications
• Communities
• Control
• Interface
• Shortening of the communications channel
• Disintermediation
• Reintermediation

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Supporting marketing communications with the
Internet

• Multimedia enhanced communications
• Speed of communications
• 24/7
• Linking together different technologies (e-mail,
  fax and SMS)
• Direct marketing tool
• E-newsletter
• FAQs
• Discussion forums

SG 25
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Differences

• Demographic differences
• Cultural differences
• Techno-lusters
• Academic buffs
• Techno boffins
• Get aheads
• Hobbyists
• Knowledge
• Traders
• Business bods
• Home users
• Market differences

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Different ways customers use the Internet cont.

• Directed information seekers
• Undirected information seekers
• Directed buyers
• Bargain hunters
• Entertainment seekers

SG 26-27
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One-to-one marketing

• Stages
• Attracting customers to the site
• Providing information
• Capture customer information to maintian
  relationship
• Maintain appropriate dialogue
• Technologies
• Web page personalisation
• E-mail
• Databases
• Virtual communities

SG 82-83
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Shaping buying behaviour

• Directed information seekers
• Undirected information seekers
• Directed buyers
• Bargain hunters
• Entertainment seekers

SG 26-27 TB 280-282
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The Internet as an information source

• Public versus private
• Finding information on the Internet
• Going directly to the page
• Guessing addressing
• Search engines
• Directories
• Start pages
• Portals
• Usenet
• Push information services
• Surfing browsing

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Advantages of using the Internet for marketing
research

• First to know
• Control of information flow
• Saves time
• Cuts costs
• Broader range of information
• Problems
• Information not always accurate
• No quality control
• No consistency
• Static/noise
• US-influence

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Planning online marketing research

• Decide what you need
• Formulate questions
• Spelling and grammar
• Suitable sources of information
• Search engines not the same
• Search results must be carefully evaluated
• Bookmark and print
• Organise and evaluate information obtained

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Marketing the Internet
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Strategic marketing and the Internet

• Situation review
• Goal setting
• Strategy formulation
• Planning, scheduling and monitoring
• Internet marketing plan (see next slide)

SG 54
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Strategic marketing and the Internet cont.
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Internet marketing plan

• Potential audience
• Integrating the Nets
• Scope of Internet marketing communications
• Migration of brands onto the Net
• Strategic partnership and outsourcing
• Organisational structure
• Budgeting
• Schedule (see page 57 in SG)

Figures 4.1 and 4.2
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Internet marketing plan

• 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
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Measuring Internet marketing effectiveness

• Development of measurement process (see page 59
  in SG)
• Online measurement methods see next slide
• Online measurement techniques see next slide
• Measuring individual behaviour see next slide
• Offline methods of metric collection
• Evaluation of promotional methods (see page 63 of
  SG

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Online measurement methods techniques

• Business effectiveness measures
• Measures for judging marketing effectiveness
• Internet marketing effectiveness

• Hits
• Page impressions
• Site visits
• Unique visitors

• Registration
• Cookies
• Click-tracking
• Observation

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Internet marketing strategy

• Internet and marketing channels
• Internet and promotion
• Online promotion techniques see next slide
• Offline promotion techniques see next slide
• Linking online and offline

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Online and offline promotion techniques

• Specific advertising
• Publicising URL
• Public relations
• Direct marketing
• Word of mouth
• Other

• Banner advertising
• E-mail
• E-mail newsletters
• Co-branding
• Sponsorships
• Reciprocal links
• Affiliates

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Internet marketing strategy cont.

• Internet and pricing
• Comparing prices
• Product overheads reduced
• Competition impacts on pricing
• Internet and product development
• Product quality
• Features and options
• Style
• Branding
• Packaging
• Product line
• Guarantees and waranties
• Service levels

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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

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The Internet and relationship marketing cont.

• Four stages (SG 81-83 and TB 223-241)
• Attracting customers (new and existing)
• Proving useful content that incentivises customer
  to action
• Capturing customer information
• Maintaining dialogue (online and offline)
• Tools (TB 241-248)
• Web page personalisation
• Web page customisation
• Community building
• Database development and mining
• E-newsletters and e-mail

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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

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E-commerce

• The importance of e-commerce
• Advantages of e-commerce for the organisation
• Advantages of e-commerce for customers
• Advantage of e-commerce for suppliers
• E-commerce enablers
• E-commerce inhibitors

See TB pages 91-92
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B2C e-commerce
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Tools for transactional e-commerce

• Tools for implementing e-commerce
• Storefront software
• Customer registration
• Customer access authorisation
• Product catalogue
• Shopping cart
• Transaction facility
• Management tools
• Integration

SG 99-102
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Website design

• 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
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Website design cont.
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Website maintenance

• Writing the content
• Reviewing the content
• Correcting errors
• Piloting the site
• Testing the site
• Launching the site
• Promoting the site
• Responsibilities
• Who owns the process
• Who owns the content
• Who owns the format
• Who owns the technology
• Content management

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B2B e-business
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Differences between B2C B2B markets

• The market structure
• Nature of the buying unit
• 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
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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
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The value chaindisintermediation
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The value chainsupply of information
Raw material supplier
Raw material supplier
Sub-assembly manufacturer
Component supplier
Manufacturer
Distributor
Wholesaler
Distributor
Retailer
Customer
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Factors affecting increased adoption of e-tailing

• 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
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The future of the Internet

• Digital brokers, software agents
• Convergence
• Broadband
• Future adoption of the Internet
• Ethical issues (see TB pages 87-96)
• Privacy and trust
• Accuracy
• Accessibility
• Transparency (who is collecting the information)
• Liability
• ECT Bill - http//www.acts.co.za/ect_act/

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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.
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Usenet (cont.)
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Distributing your product on the Net
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PR and publicity
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Disseminating information
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Customer support
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Online banking EFT
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Value-added services
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Transacting sales
60
Company web sites
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Exam format

• 6 x 25 mark questions
• Answer any 4 (four) questions
• Questions may have sub sections
• There will be a mini case study

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Thats all folks!
Thats all for today! Enjoy the rest of your
summer school and good luck with the exams