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1. Back to Table of Contents

2. 12-1 12-2 Section Section Chapter 12 Fundamentals of Internet Marketing Marketing Basics Market Research 2

3. Section 12-1Why It’s Important Relationships between buyers and sellers are more personalized and dynamic than ever before. To reap the benefits—and avoid the risks—of these advancements, both buyers and sellers must recognize marketing fundamentals. Section 12-1 3

4. marketing marketing mix market segments cross selling promotions virtual marketing personalization cookies e-mail marketing permission marketing Section 12-1Key Terms Section 12-1 4

5. Marketing Marketing encompasses countless business decisions, from Web-site designs to delivery options. marketingthe process of planning and carrying out the production, distribution, promotion, and pricing of products and services Section 12-1 5

6. The Marketing Mix To attract new customers and keep old ones coming back, you need to create a customer-focused marketing mix. marketing mixconsists of four critical elements, collectively known as the four Ps: product, price, place, and promotion Section 12-1 6

7. The Marketing Mix The Four Ps P Product P Price P Place P Promotion Section 12-1 7

8. The Marketing Mix A product is any item manufactured for sale. Services are not material goods, but rather work done in exchange for payment. Section 12-1 8

9. The Marketing Mix In marketing a product, you need to consider the level of product quality you intend to provide. Decisions regarding product quality and service levels will depend largely on your target market. Section 12-1 9

10. The Marketing Mix Some target markets include two or more market segments. market segmentsdistinct groups of people who share certain characteristics Section 12-1 10

11. The Marketing Mix Market Segment Identification Demographics Psychographics Geographics Product benefits group people by statistics such as income, age, or gender define people by their lifestyle preferences categorize people by their location identify people according to the satisfaction they get from products Section 12-1 11

12. The Marketing Mix Your product line is a group of related products that complement one another. Your product mix is the full set of products offered for sale, including all product lines. Section 12-1 12

13. The Marketing Mix A good product mix offers opportunities for cross selling. cross sellinggenerating another sale by offering related items Section 12-1 13

14. The Marketing Mix Price is the amount of money a business receives in exchange for a product or service. When setting prices, consider costs, profits, your target market, and image. Section 12-1 14

15. The Marketing Mix When it comes to business, place means where customers shop and how the product or service will be delivered. Section 12-1 15

16. The Marketing Mix You must inspire potential customers to visit your site and purchase your products or services through promotions. promotionsadvertisements intended to inform potential customers about products or services Section 12-1 16

17. The Marketing Mix You can enhance your word-of-mouth promotion with virtual marketing. virtual marketinga cost-effective strategy that uses customers to help promote a business Section 12-1 17

18. The Marketing Mix To the four Ps of the marketing mix, a fifth could be added: personalization. personalizationrefers to establishing one-to-one relationships with your customers, for example greeting by name or offering book and movie recommendations based on previous visits Section 12-1 18

19. The Marketing Mix Many online businesses use cookies to personalize their marketing. cookiessmall text files written directly onto visitors’ hard drives, containing information such as names, shopping-cart contents, user preferences, or unique identification codes; using cookies, businesses can collect data and analyze the behavioral patterns of their customers to market personally to them Section 12-1 19

20. The Marketing Mix E-mail marketing is another way in which you can establish personal relationships with your customers. e-mail marketinginexpensive advertising method with high response rate that allows a business to establish personal relationships with customers, send customized messages, tell customers about new products and sales, or remind them to order gifts for holidays or special events in their profiles Section 12-1 20

21. The Marketing Mix Recently, many companies have started using a new marketing strategy called permission marketing. permission marketingwhen a potential customer has consented to receive marketing messages and will only receive advertisements about products and services they have requested Section 12-1 21

22. Section 12-1Review What is marketing, and how can it impact an online business? How can a good product mix create successful marketing opportunities in e-commerce? Of the four Ps of the marketing mix, how can the component place be best described? What is permission marketing? 1. 2. 3. 4. Section 12-1 22

23. Section 12-2Why It’s Important To develop a strong marketing mix, a company must understand its customers’ needs, wants, and buying patterns. Researching the market enables businesses to cater more accurately to their customers. Section 12-2 23

24. market research marketing research clickstream data metrics Section 12-2Key Terms Section 12-2 24

25. Identifying Market Opportunities Traditional bricks-and-mortar retailers have always collected and analyzed market data. In the world of e-commerce, companies have their own ways of collecting market data. Section 12-2 25

26. Market Research Market researchcan help a business to recognize opportunities. market researchencompasses all of a business’s efforts to collect data regarding the economic climate, competitor prices or strategies, governmental regulations and policies, consumer demographics, and emerging technologies; distinct from marketing research Section 12-2 26

27. Market Research There are two main types of market research. Primary Primary research is data gathered directly from people. Secondary Secondary research is a summary of existing data gathered from nonhuman sources. Section 12-2 27

28. Market Research Marketing research is conducted by all types of businesses. marketing researchfocuses specifically on consumer behaviors and the reasons behind buying habits; it collects information about consumers, especially a company’s target market, and analyzes demographics, buying habits, product preferences, and concerns about technology; distinct from market research Section 12-2 28

29. Market Research Clickstream data, or the information recorded in most server logs, is another rich source of information. clickstream dataa Web site visitor’s electronic footprints, recorded in most server logs, including their unique IPs, page views, downloaded images, and URLs Section 12-2 29

30. Market Research Metrics can be used to improve site navigation, create better privacy policies, and determine which pages generate the most interest. metricspatterns found in clickstream and other data Section 12-2 30

31. Market Research Internet and traditional shoppers want similar things from their shopping experience: • easy navigation • quick and simple checkout • privacy and security • fair prices • quality products Section 12-2 31

32. Section 12-2Review How are Internet and traditional shoppers similar? Why will a business conduct research into its distribution operations? What is the difference between primary and secondary research? Provide examples of each. 1. 2. 3. Section 12-2 32

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34. End of Back to Table of Contents