INTERNET

1. INTERNET The ‘e’ Age Business Tool Jiten K. Goradia

2. eVOLUTION of INTERNET

3. In a nutshell Started as a small US govt. project in 1970 The Advanced Research Project Agency (ARPA) linked their computers, called it ARPANET Today the Internet has million of computers from individuals, small networks to mega networks

4. Stages Of Evolution FTP File Transfer Protocol Gopher- Menu Style Information Browsing and Searching www World Wide Web

5. Technology & Life Eventsthat have increased theSpeed, Complexity, & Volumeof work in an information & knowledge world 2000 20th Century Teleportation? Not Many events/inventions have impacted life as much as the INTERNET 1990 Instant Messaging Internet 1980 E-mail 1970 Cell phones Personal Computers 1960 Affordable flying Personal Fax Machines 1950 Main frame computers Touch tone (digital) phones Electric typewriters Sputnik & Space race 1900 Late 1800’s Speed, Complexity Volume Increases Interstate Highway System Assembly lines & mass production Automobiles Trains (standardized time zones)

6. Information On Internet All worldwide published information 4000 3000 2000 1000 0 4000+ yearsof recorded history 1999 - 2002 0 2000 AD 1000 AD 1000 BC 2000 BC Between 1999 & 2002 the total amount of all information published in the world doubled (equaled the amount published in all 4000 years of recorded history)

7. The Four Virtual Spaces

8. MARKeTING on the INTERNET

9. Business-to-Consumer (B2C) Basic Forms of Electronic Commerce Business-to-Business (B2B) Basic Forms of Virtual Business

10. E-Mail Internet Marketing Techniques Corporate Web Site Interactive Web Site The Internet Presence

11. Characteristics of Internet Users • Grouped around common INTERESTS • Interests can be personal or professional • Interests can be information or entertainment driven • Interests also drive ‘word of email’ marketing • Users who are ‘Instant Decision Makers’ • Geographically Dispersed • Access to a world-wide customer base • Hit rates may be low but cost of per successful response is highly attractive

12. The Opportunity - 1 to 1 Marketing Identification Interaction 1 – 1 Marketing Customization Tracking Differentiation

13. Two Primary Considerations • PLASTICITY • Internet is always changing • The information on internet can be changed • Latest developments can be passed on to the customers • PARTICIPATION • Internet marketing requires active participation of the target audience • The marketers are dependent on the customer

14. The New Business Multiplier Electronic Marketing Channel Find out about products Get answers to questions Leave messages Solve problems Make purchases

15. Push Strategy Television, Radio, Print Pull Strategy Internet Internet Marketing Strategy

16. Internet Marketing Plan Specific Internet Marketing Objectives and Strategies Statement of Company’s On-Line Business Strategy Analysis of Internet Marketing Environment

17. On-Line Market Share Internet Marketing Objectives Sales Level Repeat Purchase Market Positioning Image Brand Awareness Internet Marketing Objectives

18. Prior Internet marketing experience Degree of program sophistication Factors in Internet Marketing Program Magnitude Program Dynamics Factors in Internet Marketing Programs

19. Marketing Researchthrough the Web The Web in Marketing Research Vast information sources for secondary research Better primary research Web-based surveys and focus groups Information about competitors

20. Attitude toward technology Factors Influencing On-Line Buying Behavior Income Motivation to use Technology Internet Demographics and Trends

21. Early Adopters Internet Buyer Categories “Mainstreamers” Laggards Internet Demographics and Trends

22. On-Line Positioning • Identify the most important target market • Identify that market’s on-line need • Determine how the company’s Internet presence meets that need • Identify how the on-line presence is better than the competition.

23. Ways to Overcome Lack of Product Contact Personalized Service Virtual On-Line Product Trials Branding Product Strategies on the Web

24. Opportunities for Customer Relationship Marketing Profiles of preferences E-mail notifications Customer service Convenient on-line shopping Customer Relationship Marketingon the Internet

25. Banner Advertisements Button Advertisements Interstitial Advertisements Untargeted E-Mail Marketing Targeted E-Mail Marketing On-Line Promotion

26. Bulletin Boards Types of Virtual Communities Chat Rooms Newsletters Discussion Lists The Virtual Community

27. Increase or enhance exposure Improve customer service Provide new products/services Add value to existing products/services Lower overall company costs Create one-to-one customer relationships Examples of Internet Strategies

28. Easier access to worldwide information Information content that is more current The ability to make complex searches Incorporation of multi-media Lower publication costs Advantages ofElectronic Publications

29. Uses of Interactive Web Sites Execute Transactions Deliver Electronic Products and Services Collect Demographic and Behaviouristic Customer Data

30. Advantages Disadvantages • Eliminate distribution network complexity • Increase customer traction at low costs of contact • Need to manage all channel activities • Hit rates may be low Internet Direct Selling

31. E-Tailing Retailing on the Web

32. Internet Shopping vs. Store Shopping • For many, Internet shopping is more convenient and less expensive • Store shopping provides product “touch and feel” • E-tailing changes shopping from entertainment to a functional task

33. Hits Capturing Web Statistics Page View Site Registration Cookie Technology Evaluating the Outcome

34. FINANCIALS of NeTTING

35. Financials 8,00,000 5000 1,00,000

36. Competitive advantage Reduction in expenses Reduced inventory Lower financial barriers to entry Financial Implications

37. THANK YOU