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MBA 563 Marketing Technology Introduction The impact of the internet on marketing

MBA 563 Marketing Technology Introduction The impact of the internet on marketing. Week 1. What is internet marketing?. Online marketing/ eMarketing / digital marketing / web marketing / internet marketing?

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MBA 563 Marketing Technology Introduction The impact of the internet on marketing

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  1. MBA 563Marketing TechnologyIntroductionThe impact of the internet on marketing Week 1

  2. What is internet marketing? • Online marketing/ eMarketing / digital marketing / web marketing / internet marketing? • The application of the internet and related digital technologies in conjunction with traditional communications to achieve marketing objectives ……Dave Chaffey http://www.smartinsights.com/digital-marketing-strategy/online-marketing-mix/definitions-of-emarketing-vs-internet-vs-digital-marketing/

  3. Why study internet marketing? • Over the past 20 years traditional marketing practices have been transformed • October 27, 1994 – first banner ad • Digital marketing continues to grow and attract marketing dollars • The influence of Web 2.0 in the late 90s and early 2000s, product digitization, and now the impact of mobile computing • Continuing strong growth in business-to-consumer and business-to-business eCommerce • New skills, knowledge and strategies in high demand in the business world – very strong demand in this area • Marketers need to understand technology and collaborate with IT colleagues

  4. Course outline and required course materials Course website: http://web.viu.ca/thomasb/mba563.html ..and http://web.viu.ca/thomasb/weekly_mba563.html

  5. The 4Ps in transition

  6. The impact of the Internet on the traditional marketing mix framework • Product – new products, the rise of the “prosumer” • Price – dynamic pricing, comparison pricing, bidding……..FREE! • Place– direct distribution of digital products, supply chain management, channel integration • Promotion – new social and communications media, measurable advertising • Strong trend towards personalization and away from the mass (undifferentiated) market affecting all the elements of this framework • The Six “I”s Framework • Interactivity • Intelligence (market) • Individualization • Integration • Industry restructuring • Independence of location MacDonald and Wilson. The New Marketing, 2002 Source: eMarketingeXcellence. 2012. Smith &Chaffey

  7. Interactivity • The internet is not TV • Conversation, not broadcast • Pull, not push • Active rather than passive (lean-forward medium) • Social Networking / User Generated Content / Web 2.0 Source: eMarketingeXcellence. 2012. Smith &Chaffey

  8. [Market] Intelligence • By the very act of using the internet, we are “telling” marketers what we want: • Passively • Clickstream data • Web analytics • Actively • Social network updates, photos, videos, reviews, forum postings etc Source: eMarketingeXcellence. 2012. Smith &Chaffey

  9. Individualization Same message to all customers or segments • The market of one: based on the information about customers that we provide, and that is collected automatically and monitored constantly • Amazon for example Traditional media Message tailored to each customer or micro-segment New media Source: eMarketingeXcellence. 2012. Smith &Chaffey

  10. Integration • Online marketing is very readily integrated into a marketing communications strategy • Web channels complement and integrate with offline marketing channels • EXAMPLES? • Call a customer service rep for assistance • Movie trailers on YouTube Source: eMarketingeXcellence. 2012. Smith &Chaffey

  11. Industry restructuring and Independence of location INDUSTRY RESTRUCTURING • Disintermediation – traditional intermediaries used by marketers disappearing • Re-intermediation new intermediaries (eg. PayPal) • Business models challenged LOCATION INDEPENDENCE • Increased reach to global markets • Increased exposure • Increased competition Source: eMarketingeXcellence. 2012. Smith &Chaffey

  12. Product Product trends online • Digital value – adding value to products through online means • Digitization – product or place? • Personalization – individualized products and the “prosumer” Source: eMarketingeXcellence. 2012. Smith &Chaffey

  13. Place Digital goods distribution • Any product that can be digitized can be delivered over the Internet • Online distribution costs are significantly lower • No inventory problems • No product depletion • Completely new business models based on digital distribution methods • Internet becomes a direct substitute for an offline distribution channel eg. online banking Source: eMarketingeXcellence. 2012. Smith &Chaffey

  14. Some industries that are undergoing rapid change due to Internet forces affecting product and place Place • Recorded Music industry • Video/DVD rental industry • Newspaper and magazine publishing • Banking • Book publishing • Textbook publishing • Forces for change: • Digitizable product • Self service • Direct to consumer shift • Personalization Product

  15. Price Pricing • Internet influences – buyer and seller perspectives of price • Moving from free to fee (and freemium) • Price comparisons / transparency • Dynamic pricing Source: eMarketingeXcellence. 2012. Smith &Chaffey

  16. Price Going from free to paid • Big issue now is persuading people to pay for something they used to get for “free” or finding some other strategy to monetize • Some strategies • Freemium: provide basic service at no cost, with upgraded or enhanced service being charged for eg. • Flickr • LinkedIn • Shockwave.com (casual games) Source: eMarketingeXcellence. 2012. Smith &Chaffey

  17. Online promotion Promotion • We will look at the many new techniques available to marketers to promote goods and services online • The big value of internet marketing – ability to measure results and therefore performance based Source: eMarketingeXcellence. 2012. Smith &Chaffey

  18. The online marketing toolbox

  19. The online marketing toolbox. Owned, earned or paid?

  20. The importance of distinguishing between owned, earned, and paid media • When selecting tools for a marketing activity we have to look for three distinct aspects of those tools • Different purpose and return on investment for each

  21. “Owned” media • Owned media: “media owned by the brand. Online this includes a company’s own websites, blogs, mobile apps or their social presence on Facebook, LinkedIn or Twitter [etc]” Dave Chaffey One of Dell’s twitter accounts Starbucks on Pinterest

  22. Liking, sharing, and commenting on a Starbucks’ Facebook post “Earned” media • Earned media: “Earned media also includes word-of-mouth that can be stimulated through viral and social media marketing and includes conversations in social networks, blogs and other communities.” Dave Chaffey Comments posted to the SkyrimReddit pages (not owned by Bethesda)

  23. “Paid” media Instagram sponsored post • Paid media: “media where there is investment to pay for visitors, reach or conversions”Dave Chaffey Twitter promoted account Google Adwords PPC advertising

  24. Owned, earned and paid media: role, benefits & challenges http://www.smartinsights.com/digital-marketing-strategy/customer-acquisition-strategy/new-media-options/

  25. Owned, earned & paid media – the overlaps http://www.smartinsights.com/digital-marketing-strategy/customer-acquisition-strategy/new-media-options/

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