Marketing Strategy and the Internet with an International Perspective

1. Marketing Strategy and the Internet with an International Perspective Mike Ward Salford Business School The University of Salford

2. Presentation Objectives • To Consider the Marketing Communications Potential of the Web • To consider the role of traditional / “old-fashioned” marketing communications • To look at the possible opportunities and dangers involved in using the Internet

3. Other Presentation Objectives • “To get you thinking”! • “To get you to participate”! • 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

4. 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

5. Original Business Uses-1995 • Email • Transferring files from one computer to another----Supplier/customer implications • On-Line discussion---bulletin boards • Searching and browsing • Posting, hosting and presenting information

6. Main Uses/Potential-2008 • Customer Relationship Management • E-Commerce • Information gathering • Marketing Communications

7. Massive Potential but also Dangers • 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?

8. Big Dangers if the use of the World Wide Web is not Managed and Understood!!!! • Poor management of customers • Non delivery of products-alienation of customers • Negative attitudes created- no customer loyalty • Can Threaten long-term future-NO CUSTOMERS!!!

9. Implications • The Web can NOT be used in isolation from other marketing functions Integration essential:- Sales, Advertising, Service And Investment in training

10. The internet is Different to Traditional Media • Global nature • Interactivity • 24 hours a day • Immediacy • Access • Portability • Opportunity to integrate with other communications • Few barriers to entry

11. Implications and Questions • We need to understand our “web market” • Will customers buy our products? • Will the Web attract new customers? • Will the web enhance and improve our business?

12. Strategic Segmentation e-Visionaries (27%) H e-Followers (36%) e-Business Strategy e-Laggards (37%) L L H e-Business Adoption

13. Segmenting the Belgian surfers Intensity of internet usage Addicts 22% Triers 16% Frequency of internet usage Pros New Borns 24% 38%

14. Internet Users (Forsyth et al 2000) • 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

15. Consumer control of contact and content in communications media Consumer control of content greater lesser lesser Direct mail advertising telemarketing Consumer control of contact Personal selling Electronic commerce greater Kiami (1998)

16. The 7Cs of the Customer Interface(Rayport and Jaworski,2004) • 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

17. Specific Characteristics of Interactive Media • 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 interaction do we want?

18. 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

19. Social presence and communications style in communications media Personal selling higher Telemarketing Social presence Electronic commerce TV Shopping Traditional advertising lower instant delayed Communications style Kiami (1998)

20. Implications • 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 wed of consumers

21. 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 goods, telephone support • Commitment in time and cost • What is the role of our web presence? These aspects are misunderstood- all you need is a website!! (some say)

22. The “PERSONAL” Factor In a world of technology, increasingly the personal factor will be important-Telephone, 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?!

23. Loss of Personal/Oral Skills • Need to invest in personal communications skills-Schools, Universities • Need to invest in people, employ more • Need to recognise importance of personal interaction

24. How Important will be the Role of the Internet in the future?

25. A View of the Future • Eero, 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

26. A View of the Future-Continued • Eero 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 (20 euros)

27. An Alternative View of the Future Annina, a student in 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 Tampere. 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.

28. An Alternative View of the Future (continued) Annina 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!!

29. Two Opposing Views • 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.

30. An Alternative View of the Future (continued) Maria attends a team building course with 20 others in the Alps. • She attends a Karaoke class in Castellon • 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!!

31. Two Opposing Views • 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.

32. 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!!

33. Thankyou!! • All the best for the future. Please contact me if you want to know anything about the U.K, Salford and Manchester M.F.Ward@salford.ac.uk