Welcomes you to a workshop on ... Cybermarketing as part of Unisa’s 2006 Honours Spring School

1. The Department of Marketing Management Welcomes you to a workshop on ... Cybermarketing as part of Unisa’s 2006 Honours Spring School Neels Bothma

2. The Internet (or sometimes just called the Net) is a world-wide interconnected network of computers that lets a computer in one part of the world communicate with a computer or computer network located somewhere else in the world, using either an ordinary telephone line or a special dedicated data line. The Internet Software Internet ISP Telephone line Modem Computer

3. The Internet (cont.)

4. No. of hosts/computers +100 000 000 No. of users +630 000 000 No. of users in SA +4 million Internet statistics

5. Internet Service Providers (ISPs) An Internet Service Provider (ISP)is a company that has a direct, dedicated and permanent connection to the Internet. It offers its registered clients access to the Internet by renting out its facilities for a fee, based either on a fixed monthly payment or an hourly rate. NET ISP

6. Getting online THE INTERNET COMPANY WEB SITE CONSUMERS COMPANY

7. The Micro, Market & Macroenvironments MACRO Economic forces Socio-cultural forces MARKET Customers Suppliers MICRO Government Political/legal forces Mission Resources Price Product Promotion Place Competitors Facilitators Interest rates Technology Infrastructure & geography Inflation

8. Intranets, Extranets & Internet MACRO Economic forces Socio-cultural forces MARKET Customers Suppliers MICRO Government Political/legal forces Mission Resources Price Product Promotion Place Competitors Facilitators Interest rates Technology Infrastructure & geography Inflation Intranet Extranet Internet

9. The World Wide Web(which is also simply known as the Web) is a way of looking at and organising the information on the Internet. The web is basically a subset of the Internet and organises information according to pages - more than 10 billion of them - that lie all over the Internet. These pages are interlinked with each other using hypertext(also called hyperlinks). In other words, each page is connected to other pages, that are connected to other pages, that in turn are connected to still more pages, and so on, much like a spider’s web - hence the name, the Web The World Wide Web

10. Web sites and web pages

11. It is a multimedia environment • It is a global environment • It is interactive • It is easy to use and intuitive • It is affordable • It is a 24-hour environment • It allows you reach to the masses • It allows you to customise for one • Large amounts of information can be easily stored on the Web • It is a non-linear form of communication Advantages of the Web Refer to figure 1.2 in SG

12. Business Market development Diversification Market penetration Product development Marketing Sales Market communications Customer service Public relations Marketing research Online benefits SG 14-17

13. 6Cs Cost reduction Capability Competitive advantage Communications improvement Control Customer service management Online benefits (cont.)

14. Target marketing Message tailoring Interactive capabilities Information access Sales potental Creativity Exposure Speed Online benefits (cont.)

15. Internet marketing communications • Marketspace • Digital • Interactive • Deep • Global • Non-linear • Mass-marketing • One-to-one • One-to-many • Many-to-many

16. Internet marketing communications cont. • Personal • Personalisation • Customisation • Pull • Two-way communications • Communities • Control • Interface • Shortening of the communications channel • Disintermediation • Reintermediation

17. Supporting marketing communications with the Internet • Multimedia enhanced communications • Speed of communications • 24/7 • Linking together different technologies (e-mail, fax and SMS) • Direct marketing tool • E-newsletter • FAQs • Discussion forums SG 25

18. Differences • Demographic differences • Cultural differences • Techno-lusters • Academic buffs • Techno boffins • Get aheads • Hobbyists • Knowledge • Traders • Business bods • Home users • Market differences

19. Different ways customers use the Internet…cont. • Directed information seekers • Undirected information seekers • Directed buyers • Bargain hunters • Entertainment seekers SG 26-27

20. One-to-one marketing • Stages • Attracting customers to the site • Providing information • Capture customer information to maintian relationship • Maintain appropriate dialogue • Technologies • Web page personalisation • E-mail • Databases • Virtual communities SG 82-83

21. Shaping buying behaviour • Directed information seekers • Undirected information seekers • Directed buyers • Bargain hunters • Entertainment seekers SG 26-27 & TB 280-282

22. The Internet as an information source • Public versus private • Finding information on the Internet • Going directly to the page • Guessing addressing • Search engines • Directories • Start pages • Portals • Usenet • Push information services • Surfing browsing

23. Advantages of using the Internet for marketing research • First to know • Control of information flow • Saves time • Cuts costs • Broader range of information • Problems • Information not always accurate • No quality control • No consistency • Static/noise • US-influence

24. Planning online marketing research • Decide what you need • Formulate questions • Spelling and grammar • Suitable sources of information • Search engines not the same • Search results must be carefully evaluated • Bookmark and print • Organise and evaluate information obtained

25. Information Market research Target audience & segmentation MACRO Product quality Customisation & personalisation Economic forces Socio-cultural forces MARKET Branding Customers Customer support Suppliers Government Political/legal forces MICRO Mission Resources Price Product Promotion Place Changing supply/ value chains Online distribution Competitors Facilitators Interest rates Technology Promotion Online advertising Infrastructure & geography Inflation E-mail marketing Pricing Price comparison Price setting Marketing & the Internet

26. Strategic marketing and the Internet • Situation review • Goal setting • Strategy formulation • Planning, scheduling and monitoring • Internet marketing plan (see next slide) SG 54

27. Strategic marketing and the Internet cont.

28. Internet marketing plan • Potential audience • Integrating the Nets • Scope of Internet marketing communications • Migration of brands onto the Net • Strategic partnership and outsourcing • Organisational structure • Budgeting • Schedule (see page 57 in SG) Figures 4.1 and 4.2

29. Internet marketing plan • Potenial audience • Integrating the “Nets” • Defining scope of Internet marketing • Migration of brands onto the Internet • Strategic partnerships and outsourcing • Organisational structure • Budgeting • Scheduling SG 55-58

30. Measuring Internet marketing effectiveness • Development of measurement process (see page 59 in SG) • Online measurement methods – see next slide • Online measurement techniques – see next slide • Measuring individual behaviour – see next slide • Offline methods of metric collection • Evaluation of promotional methods (see page 63 of SG

31. Online measurement methods & techniques • Business effectiveness measures • Measures for judging marketing effectiveness • Internet marketing effectiveness • Hits • Page impressions • Site visits • Unique visitors • Registration • Cookies • Click-tracking • Observation

32. Internet marketing strategy • Internet and marketing channels • Internet and promotion • Online promotion techniques – see next slide • Offline promotion techniques – see next slide • Linking online and offline

33. Online and offline promotion techniques • Specific advertising • Publicising URL • Public relations • Direct marketing • Word of mouth • Other • Banner advertising • E-mail • E-mail newsletters • Co-branding • Sponsorships • Reciprocal links • Affiliates

34. Internet marketing strategy cont. • Internet and pricing • Comparing prices • Product overheads reduced • Competition impacts on pricing • Internet and product development • Product quality • Features and options • Style • Branding • Packaging • Product line • Guarantees and waranties • Service levels

35. The Internet and relationship marketing • Relationship marketing – developing and maintaining on-going relationships in order to benefit from a lifetime of association • Goals of relationship marketing • Identification • Individualism • Interaction • Integration • Integrity

36. The Internet and relationship marketing cont. • Four stages (SG 81-83 and TB 223-241) • Attracting customers (new and existing) • Proving useful content that incentivises customer to action • Capturing customer information • Maintaining dialogue (online and offline) • Tools (TB 241-248) • Web page personalisation • Web page customisation • Community building • Database development and mining • E-newsletters and e-mail

37. Defining e-commerce e-Commerce isa dynamic set of technologies, applications and management systems that enable and manage relationships between an enterprise, its functions and processes and those of its customers, suppliers, value chain, community or industry Based on the GartnerGroup definition of e-commerce

38. E-commerce • The importance of e-commerce • Advantages of e-commerce for the organisation • Advantages of e-commerce for customers • Advantage of e-commerce for suppliers • E-commerce enablers • E-commerce inhibitors See TB pages 91-92

39. M-Web ShopZone Transaction Relationship Interest Fantasy Learning Web portals Cybermediaries Priceline Company Buy.com Customers ISPs CCH Web sites Internet Solution IAfrica.com Netactive World Online M-Web Philips B2C e-commerce

40. Tools for transactional e-commerce • Tools for implementing e-commerce • Storefront software • Customer registration • Customer access authorisation • Product catalogue • Shopping cart • Transaction facility • Management tools • Integration SG 99-102

41. Website design • Register domain • Select ISP • People involved • Analyse target audience • Competitor sites • Architecture • Develop content • Site design, navigation, usability • Test, review and revise • Publish content • Promote site See SG 51-53 & TB 265-280

42. Website design cont.

43. Website maintenance • Writing the content • Reviewing the content • Correcting errors • Piloting the site • Testing the site • Launching the site • Promoting the site • Responsibilities • Who owns the process • Who owns the content • Who owns the format • Who owns the technology • Content management

44. Sourcing of inputs Sourcing of inputs Marketing of products Marketing of products Contract negotiation Contract negotiation Peers Ordering Ordering Business Entity Business Entity Supply and invoicing Supply and invoicing S B S B Business Entity Payment Payment Conversion process Business Entity Business Entity Market offerings Raw materials Buying Selling B S B S Business Entity Business Entity Inputs Process Outputs B S B S SUPPLY CHAIN SUPPLY CHAIN PROCESS FLOW Distributors Distributors B2B e-business

45. Differences between B2C & B2B markets • The market structure • Nature of the buying unit • Users • Influencers • Buyers • Deciders • Gatekeepers • Type of purchase • Low volume, high value • One-off • High volume, low value • Type of buying decision • Overriding contract & purchases within contract • Communication differences See SG pages 119-120

46. The value chain Raw material supplier Raw material supplier Sub-assembly manufacturer Component supplier Manufacturer Supply of information Distributor Wholesaler Supply of goods Distributor Retailer Customer

47. Raw material supplier Raw material supplier Sub-assembly manufacturer Component supplier Manufacturer Distributor Customer The value chaindisintermediation

48. The value chainsupply of information Raw material supplier Raw material supplier Sub-assembly manufacturer Component supplier Manufacturer Distributor Wholesaler Distributor Retailer Customer

49. Factors affecting increased adoption of e-tailing • Accessibility – more users necessary • Costs • Reaching new markets • Technical considerations eg broadband • Logistics – backing up the sale • Internal inhibitors and facilitators • Environmental inhibitors and facilitators • Comparative advantage over retail channels (cheap 24/7, quick, everywhere) SG 116-117 & TB 420-421

50. The future of the Internet • Digital brokers, software agents • Convergence • Broadband • Future adoption of the Internet • Ethical issues (see TB pages 87-96) • Privacy and trust • Accuracy • Accessibility • Transparency (who is collecting the information) • Liability • ECT Bill - http://www.acts.co.za/ect_act/