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Australian TAFE Marketing Association Conference: Internet and Marketing Joanne Jacobs Brisbane Graduate School of Business Queensland University of Technology Scope of content covered TAFE Online Who is online and why? The Australian Digital Citizen Marketing via the internet Changing consumer expectations Internet & decision making Evolution of online marketing Market research online Strategic advantages and disadvantages of marketing TAFE via the internet TAFE Online Problems with existing iterations of online TAFE sites based on: Poor design and navigation Low integration of online and offline marketing activities Misunderstanding the links between the TAFE market and the digital citizen Good news is: Most other organisations have also missed the mark Web Attractors & Inhibitors Attractors Financial / economic reasons Efficiency Broader (global) markets Promotional reasons Inhibitors Is there any point to online marketing? TAFE is education. This is a service and practically oriented. We don’t think it’s suited to the Internet. Web sites not ready? Adoption profile of Internet users Innovation Adoption Overview Innovators: Venturesome, (try anything once) Early Adopters: Respectable (the Net is hip - adopt now to be a social leader Early Majority: Deliberate (needs and wants) Late Majority: Sceptical (ends up needing, not always wanting) Laggards: Traditional (want not, adopt not) Barriers to Adoption cost : time and money Internet literacy fear : security, privacy, unwanted content lack of desire : no perceived benefit expectation gap : trialled and abandoned Internet Behaviour Factors Factors influencing Internet behaviour – Time & space independence Anonymity Internet ‘culture’ and ‘netiquette’ Not for profit & information sharing influences Lack of central controlling authority TAFE sites need to be wary of these factors Main motivations to use the Net Convenience 24 / 7 , convenient access to banking & retailing Information Motivation Curiosity or deliberate desire to learn or seek information Global access World wide resources, markets, communications Utility / necessity Work, education Recreation many forms of entertainment (online games, chat groups) Anonymity Freedom, reduced risk Community Online communities, common interest & experiences Communication & Social Motivation Interaction with other chat rooms, news groups, discussions groups, mailing lists, e-mail Inherent merit Pleasure derived from surfing the net Cybercommuning communities based on shared interests, shared emotional and psychological support allows for clanning behaviour without the mediator of geographic constraint provides a more collaborative, networkingoriented experience for users These aspects should be accommodated in TAFE marketing practices The Australian Digital Citizen (1) Growth of internet access still rising in Australia. 52% Currently have home access. Australians spend an average of 6:55hrs online per month over 13 sessions The Australian Digital Citizen (2) 65% of 18-24 year olds access the internet 64% of 25-49 year olds access the internet 37% of users aged 50+ access the internet (Source: NOIE, eMarketer, 2001) TAFE key markets have internet access and are technologically literate Changing Consumer Expectations The modern consumer has become more demanding and wants to research opportunities before approaching the institution. time pressures customisation empowerment & expectations Role of the Internet in Decision Making Online marketing assists decision to study TAFE Problem Recognition Information Search Evaluate Alternatives Purchase Decision Post Purchase Behaviour Internet Advantages for Decision Making evaluation of alternatives formal & informal sites add input • EG: Formal websites, Newsgroups, Blogs. purchase decision convenience, global access • Can you enrol online? post purchase evaluation online communities, help & info lines, relationship marketing • Maintaining your relationship with TAFE students Evolution of Online Marketing Level 1: Information publishing Early TAFE sites, course listings, ‘online brochureware’ Level 2: Transaction based systems Advanced TAFE sites, allowing enrolment online Level 3: Mass customisation Customised sites with student information services and suggestive marketing Online TAFE Marketing benefits economics of increasing returns need a critical mass use for value marginal returns improve for all users of an online TAFE system as online communities develop long term orientation provides capacity to sustain association with alumni through cybercommunities selling customers to customers word-of-mouth promotion Value of cybercommunity to TAFE Support networks for technical issues for teaching support materials Customer to customer communities can generate positive word of mouth C2C marketing discussions between current users, potential users and occasionally ex-users of the product Online research for existing and potential users of TAFE product Why the Internet as a Research tool? The largest storehouse of human knowledge in history A commercially active marketplace with highly competitive firms Broad reach at low cost Proactive customers who now have have opportunity to interact with content Functions of Online Marketing Research Scanning scan the environment for early detection of opportunities and threats Risk Assessment attempts to replace subjective opinions with objective results based on research Monitoring used to evaluate the effectiveness of marketing strategy Primary Data Collection Online surveys email or website surveys Low cost Access to larger survey group Faster response time Online focus groups chat technology, video conferencing Clicktracking, unobtrusive observation & ethnography Internet Surveys-advantages Mail and phone rates declining- new channel needed higher response rates- novelty, customisation, instant feedback Response accuracy greater- digitisation of data= reduced errors, no bias, uncompleted surveys can be checked More enjoyable and aesthetically pleasing (due to graphics, instant feedback and mouse clicks) Internet Surveys-advantages Less expensive- data tabulation, survey distribution Faster turnaround Great for new product testing Global reach Customisable Helps in finding certain highly specific research targets Can be made interactive (e.g. instant feedback) Internet surveys-disadvantages self-selection, interest driven internet population not representative anonymity of respondents – truthfulness Cost of hardware, software & data connection reluctance to divulge information short attention span on-line (sometimes only 25 30 seconds) lack of interpersonal experience multiple polling Focus Groups - Advantages Cost - traditional focus groups-very costly Facilities, incentives, transportation, food, transcription of data Efficiency short period of time Group Diversity geographical, social, demographic anonymity may reduce negative stereotypes time-strapped consumers Focus Groups - Limitations screening problems technical/environmental limitations distractions no eye contact qualitative data - not what you say but how you say it (or even what you don’t say) product limitations images and text okay no physical handling of goods Secondary Data Collection Quantity – availability, storage Quality – reliability & quality of data Reach – low cost access Competitor intelligence Self search Online Marketing Implications Changes to the retail value chain Changes to the nature of consumer behaviour and customisation capacity Segregation of the market (online/offline components, levels of ICT literacy) Increased capacity and need for credible market research Online marketing influences traditional markets on a global basis Contact details: Joanne Jacobs Brisbane Graduate School of Business Queensland University of Technology Ph: (07) 3864 2065 Fax: (07) 3864 1299 Email: [email protected]