Download Internet Marketing Concepts

Internet Marketing Concepts
Part 2
Objectives
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The new communication medium
The Internet and the marketing mix
Key elements of effective web site designs
Internet marketing versus conventional
marketing
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
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
Communication Using the
Internet
C5
C1
O
C4
O
Internet Medium
C2
M
O
O
C3
O
The Communication Model
N
Source
(web site)
Message encoding
O
I
S
E
Site content or e-mail
Feedback (transaction log file)
Receiver
(web browser)
Message decoding
Cultural Difference
• Uses of the Internet in the UK (1998) includes:
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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)
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)
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
Internet and Marketing Mix
Using the Internet to vary the marketing mix
Product
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Quality
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Image
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Branding
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Features
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Variants
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Mix
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Support
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Customer
service
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Use
occasion
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Availability
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Warranties
Price
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Positioning
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List
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Discounts
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Credit
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Payment
methods
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Free or
valueadded
elements
Promotion
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Marketing
communica
tions
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Personal
promotion
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Sales
promotion
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PR
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Branding
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Direct
marketing
Place
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Trade
channels
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Sales
support
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Channel
number
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Segmented
channels
People
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Individuals
on
marketing
activities
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Individuals
on customer
contact
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Recruitment
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Culture/ima
ge
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Training and
skills
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Remuneration
Processes
•
Customer
focus
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Businessled
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ITsupported
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Design
features
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Research
and
developme
nt
The buying Process on the Internet
Stages in
buying process
1. Unaware
2. Aware of
product need,
develop
specification
3. Suppliers
search
Communications
objectives
Generate awareness
Internet marketing
techniques
Banner advertising,
PR, links
Position Features,
benefits and brands
Web site content
(Plus search support)
Lead generation
(from range of
customers)
Search engines,
Intermediaries
4. Evaluate and
select
Assist purchase
decision
5. Purchase
Facilitate purchase
6. Post-purchase
evaluation and
feedback
Support use and
retain business
Web site content,
Intermediaries
Web site content
Personalized web
Site content and
interaction
Key Elements of Effective Web Site
Design
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Capture
Content
Community
Commerce
Customer orientation
Credibility
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
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