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Internet Marketing, 2nd Ed
Mohammed, Fisher, Jaworski, Paddison
Chapter 1 Lecture Slides
Introduction to Internet Marketing
Exhibits and Tables
Copyright © 2003 by Marketspace LLC
Introduction to Internet Marketing — Today’s Objectives
Objectives will be to:

Define the scope of Internet marketing

Explore the stages of Internet marketing

Discuss the relationship stages and the Marketspace Matrix

Examine guidelines for success

Outline the progression of the book
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 1:
Introduction to Internet Marketing

The Scope and Impact of Internet Marketing

The Seven-Stage Cycle of Internet Marketing

The Four Key Relationship Stages and the Marketspace Matrix

Guidelines for Internet Marketing Success

Overview of the Book

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 1:
Introduction to Internet Marketing

The Scope and Impact of Internet Marketing

The Seven-Stage Cycle of Internet Marketing

The Four Key Relationship Stages and the Marketspace Matrix

Guidelines for Internet Marketing Success

Overview of the Book

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–1: Assessing the Impact of Internet Marketing
Marketing Resource Allocation
Bricks-andMortar
Offline
Online
Cell 4
Cell 2
Cell 3
Cell 1
Location of
Revenue
Stream
Online
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 1–A:
Drill-Down: Common Myths Associated with Internet Marketing
Drill-Down
Myth
Point of View on Myth

Myth 1: Customers Behave Online as
They Do Offline


Myth 2: Segmentation No Longer
Matters Online


Myth 3: Online Personalization Is a
Waste of Time and Money

Firms must gauge the degree of
interactivity to which their audience will
most likely respond.
Segmentation does matter; the Internet
opens new ways to segment customers
Personalization does matter, but only if
it enhances the user experience and
drives the business results
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 1:
Introduction to Internet Marketing

The Scope and Impact of Internet Marketing

The Seven-Stage Cycle of Internet Marketing

The Four Key Relationship Stages and the Marketspace Matrix

Guidelines for Internet Marketing Success

Overview of the Book

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–2: The Seven-Stage Cycle of Internet Marketing
Step 2
Formulating the
Marketing Strategy
Step 3
Designing the
Customer
Experience
Step 1
Framing the
Market
Opportunity
Step 4
Crafting the
Customer
Interface
Step 7
Evaluating
the
Marketing
Program
Step 6
Step 6.
Step 5
Leveraging Customer
Information Through
Technology
Designing the
Marketing Program
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–3: Framework for Market Opportunity
Seed Opportunity in Existing of New Value System
Identify Unmet and Underserved Need(s)
Identify Target Segment(s)
Declare Company’s Resource-Based Opportunity
for Advantage
Assess Competitive, Technological, and Financial
Opportunity Attractiveness
Make “Go / No-Go” Assessment
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–4: Corporate, Business-Unit, and Marketing Strategy
Example
Corporate
Strategy
Amazon
Business-Unit
Strategy
Tools and
Hardware
Integrated
Marketing Strategy
for Unit
Integrated
Marketing Strategy
for Tools and
Hardware Unit
Internet
Marketing
Traditional
Marketing
Online
Marketing Mix
Offline
Marketing Mix
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 1:
Introduction to Internet Marketing

The Scope and Impact of Internet Marketing

The Seven-Stage Cycle of Internet Marketing

The Four Key Relationship Stages and the Marketspace Matrix

Guidelines for Internet Marketing Success

Overview of the Book

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–5: The Four Key Stages of the Customer Relationship
Awareness
Exploration /
Expansion
Commitment
Dissolution
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–6: The Four Key Stages of the Customer Relationship by Level of
Intensity
Level of Intensity and Degree of Relationship
Level of
Intensity
Intensity
Awareness
Exploration
Commitment
Dissolution
Stages of Customer Relationships
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–7: Internet Marketing Mix
Branding
Product
Pricing
Communication
Community
Distribution
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–8: Impact of the 2Is on the Internet Marketing Mix
Interactivity
Branding
Product
Pricing
Communication
Community
Distribution
Individualization
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1-9: The Marketspace Matrix
Relationship Stages
Awareness
Exploration
Commitment
Dissolution
Categories of Levers
Product
Price
The 2Is should influence
the design of each cell in
the matrix
Communication
Community
Distribution
Branding
Branding can also
accentuate (or lessen)
the impact of the levers
in each cell
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 1:
Introduction to Internet Marketing

The Scope and Impact of Internet Marketing

The Seven-Stage Cycle of Internet Marketing

The Four Key Relationship Stages and the Marketspace Matrix

Guidelines for Internet Marketing Success

Overview of the Book

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 1–B:
Point-Counterpoint: Arguing for New Rules or Old Rules of Marketing
Point-Counterpoint
New Rules
Old Rules
Several
Differences
One
Segmentation
There
From
basic conceptual and process
changes occur in online marketing
such change is the increased ability
to deliver on the promise of one-to-one
marketing
is also a fundamental shift to a
more consumer-driven and controlled
world — for example, a shift towards
pull-marketing and the use of more
“pull” levers, such as online community
in the online marketing world
are overstated
is still at the core of
marketing — “clusters” of consumers will
emerge that share behavior
the supply side, it is most efficient
to aggregate these consumers to reduce
costs
Successful
marketing programs include
mixing different marketing levers, both
new and old: the “master-mixer” concept
still remains
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–10: The New Rules of Marketing for the Global Digital World
1. Target segments of one and create virtual communities.
2. Design for customer-led positioning.
3. Expand the role of branding in the global portfolio.
4. Leverage consumers as co-producers through customization.
5. Use creative pricing in the Priceline.com world.
6. Create anytime-anyplace distribution and integrated supply chains.
7. Redesign advertising as interactive and integrated marketing, communication,
education, and entertainment.
8. Reinvent marketing research and modeling as knowledge creation and
dissemination.
9. Use adaptive experimentation.
10. Redesign the strategy process and supporting organizational architecture.
Source: Jerry Wind and Vijay Mahajan (2001). Digital Marketing, New York: John Wiler and Sons, p.8
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 1–C:
Critical Success Factors for Internet Marketing Executives

The willingness to understand customer needs
and provide added value to each customer
interaction

The ability to have a holistic view of the
customer and the enterprise in order to create
a uniquely advantaged strategic plan

Being able to understand the dynamic tension
between one-to-one marketing and mass
marketing and being able to strike a strategic
balance between them

The willingness to change the status quo, take
chances and use “bleeding edge” tools to lead
teams to success

The ability to manage marketing campaigns in a
more uncertain, dynamic environment, with a
new set of tools that often have few records of
successes, failures or best-practices
Customer Advocacy and Insight
Integration
Balanced Thinking
Passion and
Entrepreneurial Spirit
Willingness to Accept
Risk and Ambiguity
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 1:
Introduction to Internet Marketing

The Scope and Impact of Internet Marketing

The Seven-Stage Cycle of Internet Marketing

The Four Key Relationship Stages and the Marketspace Matrix

Guidelines for Internet Marketing Success

Overview of the Book

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 1–11: Overview of the Chapters
1. Framing the
Market
Opportunity
2. Formulating
the Market
Strategy
5. Designing the
Marketing
Program









3. Designing the
Customer
Experience
6. Leveraging
Customer
Information
Through
Technology
Customer relationships
Product
Pricing
Communication
Community
Distribution
Branding
Designing the Marketspace Matrix
Illustration: marketing campaign for
The Lord of the Rings: The
Fellowship of the Ring
4. Crafting the
Customer
Interface
7. Evaluating
the Marketing
Program

Customer metrics
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 1:
Introduction to Internet Marketing

The Scope and Impact of Internet Marketing

The Seven-Stage Cycle of Internet Marketing

The Four Key Relationship Stages and the Marketspace Matrix

Guidelines for Internet Marketing Success

Overview of the Book

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Introduction to Internet Marketing — Conclusion

Traditional marketing methods are still highly relevant in the
networked economy, though firms must now consider a host of new
and innovative marketing methods available online (e.g., dynamic pricing,
online community)

In contrast to the one-way mass promotion that characterizes modern
marketing, Internet marketing enables firms to engage the individual in
personalized dialogues

Individualization and Interactivity are two forces that make online marketing
different

Marketing, and the relationships it creates, should be considered in the
context of particular processes and stages
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC