Chapter 11 Marketing On The Internet

1. Chapter 11Marketing On The Internet

2. Marketing on Internet: Objectives OBJECTIVES • Pros & Cons of Online Shopping • Internet Marketing Techniques • E-Cycle of Internet Marketing • Marketing Your Presence • Attracting Customers to Site • Tracking Customers

3. Pros Sorting through choices Vast product selection Quick comparison of products Cons Experimental information might be necessary E.g. perfumes, clothes Delivery of products might be cumbersome E.g. lumber Marketing on Internet: Pros & Cons of Online Shopping ONLINE SHOPPING

4. Marketing on Internet: Pros & Cons of Online Shopping REASONS FOR GOING ONLINE • Establish presence • Serve your customers • Heighten public awareness • Share time-sensitive information • Sell goods • Answer important questions

5. Marketing on Internet: Pros & Cons of Online Shopping REASONS FOR GOING ONLINE (Cont’d) • Stay in touch with field personnel • Market at international level • Serve at local market • Market specialized products • Reach the youth market

6. Marketing on Internet: Internet Marketing Techniques INTERNET MARKETING TECHNIQUES Pull to Push Continuum PASSIVE AGGRESSIVE Providers of Information Site registered with many search engines Specialized services to users requesting information Specialized e-mail to users requesting periodic information Offline Advertising Banner Advertising Targeted E-mails to Past Customers Spam Mail Chain Mail Advertising

7. Marketing on Internet: Internet Marketing Techniques FORMULA SNI = Consideration Gap X Site-to-Product Affinity Consideration Gap • = Price/Purchase Frequency • Intensity of pre-purchase deliberation Site-to-Product Affinity • Sales viability + Research intensity + Configurability + Service level • Ability to deliver online experience correlated to the product/service

8. Marketing on Internet: Internet Marketing Techniques FORMULA (Cont’d) Whereby • Price = How expensive is the product compared with other household purchase? • Purchase frequency = How often does the household purchase the product? • Service level = How much customer service does the product need online? • Research intensity = How research-intensive is the purchase decision? • Configurability = How customizable is the product? • Sale viability = How viable are online sales of the product?

9. Marketing on Internet: E-Cycle of Internet Marketing E-CYCLE OF INTERNET MARKETING • Planning • Product • Pricing • Place • Promotion

10. Marketing on Internet: E-Cycle of Internet Marketing BUSINESS PLANNING • Business Plan • Written document identifying your business goals & how you will achieve them • Elements • Mission / Vision • Product • Competition • Target audience • Marketing • Sales plan • Operation • Technology

11. Marketing on Internet: E-Cycle of Internet Marketing PRODUCT & PRICING • Product • Emphasis on viability, quality & integrity • Physical vs. Service • Pricing • Frequent purchase plans • On-line auctions

12. Marketing on Internet: E-Cycle of Internet Marketing PLACE • Exchange of information between businesses and delivery companies • Ensure prompt delivery of physical goods to customers • Related to fulfillment • Internet • A delivery channel for digital products • Cheap, fast, effective • Possibility of tapping / theft of digital data

13. Marketing on Internet: E-Cycle of Internet Marketing PROMOTION • Get prospective visitors’ attention • Create interest in a product • Build a desire in the product • Banners • Internet ads • Cheap & fit traditional ad-agency formula

14. Marketing on Internet: E-Cycle of Internet Marketing PERSONALIZATION • Combination of Promotion & Product • For customers to receive personalized information • ‘Artificial Intelligence’ incorporated into Internet Marketing

15. Marketing on Internet: E-Cycle of Internet Marketing MARKETING IMPLICATIONS • Content • Dynamic & Attractive Sites • Brands • Get to the Point • Promotion • Online Events • Free Giveaways • Consistency

16. Marketing on Internet: Marketing Your Presence PROMOTING YOUR SITE ON YOUR SITE • Begins with domain name • Encourage repeat site visits • Update site content • Share with your visitors any new awards • Use promotional giveaways, contests, etc.

17. Marketing on Internet: Marketing Your Presence PROMOTING YOUR SITE ON THE WEB • Search engines & directories • Stand out from other sites • Brainstorm keywords for robot search • Ensure the site design is flawless before submitting to search engines

18. Marketing on Internet: Marketing Your Presence PROMOTING YOUR SITE ON THE INTERNET • Use e-mails to contact registered customers • Use news groups and mailing lists

19. Marketing on Internet: Attracting Customers to Site ATTRACTING CUSTOMERS TO SITE • Keeping site content current • Offer free information or products • Offer a free service as a way to entice customers online for B2B • Implement cross-selling strategy • Ensure easy and quick navigation • Introduce event marketing • Enlist affiliates

20. Marketing on Internet: Attracting Customers to Site ATTRACTING CUSTOMERS TO SITE (Cont’d) • Cultural Differences • How to market to local customers • Predicting Buying Behavior • Save time • Young, educated, and wealthier population

21. Marketing on Internet: Attracting Customers to Site PERSONALIZATION • Identification • Determining buyers’ buying pattern • Marketing attractive products • How to add personalization • Keywords • Collaborative filtering • Rule-based

22. Marketing on Internet: Tracking Customers TRACKING CUSTOMERS • Gathering web data • Log files • Forms • Cookies • Persistent vs. Session • Clickstream data analysis • Role of shop bot • Searches sites to compare prices

23. Chapter 11Marketing On The Internet