390 likes | 443 Views
We follow a proven development attachment on every project we contract. We utensil the best industry standards depending on project size and convolution. These standards and our experience guarantee superlative results and allow us to better serve clients with salutation to cost, quality and time architecture.
E N D
Learning Objectives • Explain how the Internet affects the traditional marketing mix • 2. Describe how marketers are leveraging the power of online technology • 3. Discuss the legal and privacy issues affecting Internet-based companies
Learning Objectives • Measure the effectiveness of an online marketing campaign • Discuss the effects of the Internet on marketing objectives and strategy
Learning Objective 1 Explain how the Internet affects the traditional marketing mix
Progression of product strategies: Commodities Mass customization Product Strategies on the Web 1 Branding
Branded Commodities 1 Principle of equivalent quality is applied to branded products, creating downward price pressure Camera A at Retailer A Camera A at Retailer B
Corporate Web sites Resellers’ Web sites Affiliate programs Clicks and mortar Place 1
Affiliate Programs 1 Virtual Intermediaries: • Refer customers to online retailers • Receive a commission on resulting sales • Benefit from the goodwill consumers feel for the content sites they normally visit
Consumers don’t know the site Consumers don’t know the company Converting browsers to buyers Promotion Challenges 1
Promotion Methods 1 Online promotion techniques Spam Viral Marketing (Buzz) Instant Messaging Interactive Ads Search Engine Listings Sales Promotion
Low price High price Search Engine Listings 1 Gets you to the top of the list No or low fee gets you at the bottom of the list
Pricing Pressure 1 • Shopping bots and comparison sites • Auction pricing • Demand pricing Extreme price pressure on the Internet due to:
Come Back Soon! Pricing and Consumer Loyalty 1 75% of customers participate in a loyalty program Online customer service consistently rated as poor 72% say customer service is important 41% happy with service they received Profitability is less algorithm and more caring
Learning Objective 2 Describe how marketers are leveraging the power of online technology
56% of Women Internet Demographics and Trends 2 60% of Men Online: By Gender in the U.S.
60% of Whites Online: By race in the U.S. 45% of Blacks 54% of Hispanics Internet Demographics and Trends 2
23% no high school Online: By education in the U.S. 45% of high school grads 82% of college grads and post-graduates Internet Demographics and Trends 2
Broadens and enhances access in developing nations Allows businesses to “leapfrog” into development Levels playing field for disadvantaged countries The Global Village 2
Wireless Access on Rise 2 • Wireless is growing in popularity • Will soon represent over half of all Internet users worldwide • A particular advantage for developing nations without suitable infrastructure
Business-to-business B2B Forms of Internet commerce Business-to-Consumer B2C Consumer-to-Consumer C2C Basic Forms of Virtual Business 2
Online trading floor Struggling to survive Over half out of business since 2002 B2B Exchanges 2
Using Cookies Data tracking Needed for personalized content Keep ad content fresh Controversial because of privacy concerns Maximizing Customer Relationship Marketing on the Internet 2
1 – Choose the right words 2 – Put those words at top of page 3 – Use meta tags, like bold type 4 – Increase non-reciprocal links 5 – Incorporate graphics 6 – Incorporate video/audio 7 – Pay for a better link Improving Search Engine Results 2
Learning Objective 3 Discuss the legal and privacy issues affecting Internet-based commerce
Cookies Not-so-private email Spam Identity theft Conflicting laws Cyberstalking Branded trust Major Issues in Online Privacy 3
Are bits of data mapped to your hard drive Enable marketers to personalize Web sites Cookies: Cookies 3 Can trace where you’ve been on the Internet Are the subject of a controversial debate
Identity Theft 3 Stealing personal information to commit fraud or other crimes Sharply increasing In 2003, 27 million complaints filed with the FTC
Conflicting Legislation 3 Not all countries have the same laws regulating Internet commerce Marketers (M) responsible for every law in every country M
Online Predators 3 • Cyberstalking is on the rise. • Caution is declining (e.g., online dating is increasing) • Affects trust people have for legitimate marketing efforts
Better Business Bureau “Reliability Seal” ScanAlert “Hacker Safe” Verisign “Secure Seal” Creating Trust Online 3 3rd-party seals for creating trust
Learning Objective 4 Measure the effectiveness of an online marketing campaign
The server can tell: Who visited How many times (hits) And where (page views) The server can’t tell: Recency Frequency Monetary value Metrics 4
Hits Page views Click-through counts Out-of-Date Metrics 4
Stickiness as the New Metric 4 Duration Stickiness = Frequency Site Reach
Learning Objective 5 Discuss the effects of the Internet on marketing objectives and strategy
Porter’s Five Industry Forces 5 Rivalry among existing competitors Applying Five Forces in Internet Environ-ment Barriers of entry Threat of substitutes Bargaining power of suppliers Bargaining power of buyers
…low …high …extremely low …increasing Porter’s Five Industry Forces 5 Online… Rivalries are… …intensified Barriers are… Threat of substitutes is… Bargaining power suppliers Bargaining power buyers
Behavior changes quickly Old habits die hard; people more concerned about getting needs met than fractional costs savings Non-traditional pricing will be a success People perceive prices posted by sellers to be more convenient and fair. Debunking Myths of Re-Formed Market 5 Myths Truths 1st movers have the advantage 1st movers pay the costs of development; 2nd movers have the advantage.
Back to Basis 5 Distinctive competence Sustainable competitive advantage Attract loyal customers