Download Marketing Communications and the Internet

Marketing Communications and
the Internet
Mike Ward
University of Salford
[email protected]
Presentation Objectives
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To Consider the Marketing Communications
Potential of the Web
To consider the role of traditional / “oldfashioned” marketing communications
To look at the possible opportunities and
dangers involved in using the Internet
Other Presentation Objectives
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“To get you thinking”!
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“To get you to participate”!
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To use and integrate the material in to your
other studies
To use the ideas and benefit from them in the
“real world” of business
Some facts and figures
650 million users worldwide (2003)
 200 million users in Europe
 U.K. 29 M, Italy 23 M, Germany 38 M
 31.6 million domain names(2003)
Two big implications:
People are watching less television
Interactivity is increasing
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Original Business Uses-1995
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Email
Transferring files from one computer to
another----Supplier/customer
implications
On-Line discussion---bulletin boards
Searching and browsing
Posting, hosting and presenting
information
Main Uses/Potential-2007
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Customer Relationship Management
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E-Commerce
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Information gathering
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Marketing Communications
Massive Potential but also
Dangers
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Is the Internet just another medium?
Should our attitude be to use it and
worry about it later?
Has the Internet special characteristics
that we need to understand and
evaluate?
Big Dangers if the use of the
World Wide Web is not Managed
and Understood!!!!
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Poor management of customers
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Non delivery of products-alienation of customers
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Create negative attitudes- no customer loyalty
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Can threaten long-term future-NO CUSTOMERS!!!
Implications
The Web can NOT be used in isolation from
other marketing functions
 Integration essential:Sales, Advertising, Public Relations
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And
Investment in training-CUSTOMER SERVICE!!
The internet is Different to
Traditional Media
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Global nature
Interactivity
24 hours a day
Immediacy
Access
Portability
Opportunity to integrate with other
communications
Few barriers to entry
Implications and Questions
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We need to understand our “web market”
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Will customers buy our products?
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Will the Web attract new customers?
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Will the web enhance and improve our
business?
Strategic
Segmentation(www.insites.be)
e-Visionaries
(27%)
e-Business Strategy
H
e-Followers (36%)
e-Laggards (37%)
L
L
e-Business Adoption
H
Internet Users (Forsyth et al
2005)
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Surfers-site has to be good for them to
stop
Bargainers-want a good deal, sense of
community
Connectors-novices who want to relate
to others through chat services
Routiners-concentrate on a few sites for
news and financial information
Sportsters-want to be entertained
How can we make our web
“presence” work
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How can we INTERACT effectively?
Do we want to interact?-costs money,
time etc
Do we have to change our business
philosophy?
The 7Cs of the Customer
Interface
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Context-layout of website
Content-text, sound etc
Community-user to user communication
Customization-user needs looked after
Communication- two way
communication
Commerce-ability for transactions
Connection-other linked sites
Specific Characteristics of
Interactive Media
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Social Presence-warm, sociable,
sensitive etc
Communications style- is it
instantaneous or do we have to wait for
the interaction?
Consumer control of content-what
messages do we like or want to respond
to?
Consumer control of contact-how much
information do we want interaction with
Interaction on TV
I’m a celebrity. Get me
out of here!!
20 million viewers
Voting by viewers-50%60% participation!
Talked about on TV,
Radio etc
Implications
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If the consumer does not like the
content, he/she will go away
If the consumer does not like the
contact he/she will go away
Perhaps the biggest danger is the
empowerment by the web of consumers
Main Challenges to Businesses
How convenient to the consumer is our
website?
 How easy it will be to navigate?
 How can we support other marketing
tasks e.g. delivery of good, telephone
support
 Commitment in time and cost
 What is the role of our web presence?
Misunderstood- all you need is a website!!
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A View of the Future
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David, a student in Virrat, feels tired. He
attends his English class on his computer. At
2pm! He then attends a Video Conference
with 100 international students.
He “virtual shops” at the supermarket. The
goods are delivered to his flat.
He spends the next 2 hours playing an on-line
football game with a friend in Mexico.
Finally he joins a chat room talking about and
playing “rap” music
A View of the FutureContinued
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David leaves Virrat and “attends” the
VIRTUAL MBA course at Salford (U.K.)
in Tampere
He has a VIRTUAL INTERVIEW at
Volkswagen in Munich
He VIRTUAL SHOPS in the Rodeo Drive
Mall, Los Angeles (U.S.A.)
He has a VIRTUAL SIGHTSEEING
HOLIDAY in Australia (10 euros)
An Alternative View of the
Future
Ann, a student at Virrat, attends her English
class with her friends. They work together
and have a coffee at break time.
In the afternoon they go to a designer
shopping centre in Helsinki. They try on lots
of clothes.
In the evening she looks at the English class
again on the computer and does some tests.
She looks on the Tampere Website for a film
to see at the Cinema. She texts and emails
her friends.
An Alternative View of the
Future (continued)
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Ann attends a team building course with 20
others in the Alps.
She attends a Karaoke class in Virrat
She books a holiday on the internet
She goes to the library to borrow some
books
She is STILL shopping with her friends
She is considering dating a VIRTUAL
BOYFRIEND!!
Two Opposing Views
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1.) The Internet will become a
significant part of our lives, changing
our lifestyles and changing the way we
live our lives
2.) The Internet will be a part of our
lives but only a small part and will only
be useful for carrying out boring, basic
tasks.
The “PERSONAL” Factor
In a world of technology, increasingly the
personal factor will be importantTelephone, shop and in general
communications.
Implications:
Communicators or web designers?
Managers or “web monitors?
To what extent do customers want to
speak to other human beings?!
Loss of Personal/Oral Skills
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Need to invest in personal
communications skills-Schools,
Universities
Need to invest in people, employ more
human beings!
Need to recognise importance of
personal interaction
Alternatives to the Internet
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Television
Radio
Teletext
Telephone
Information Offices
People!!!
The Cinema etc……
Conclusions
The internet has enormous opportunities but
is misunderstood by many businesses.
The “Personal Factor” is still important but is
this recognized by businesses?
Technology and the Web is one part of
marketing strategy-not a replacement!!