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Internet Marketing

Internet Marketing. Individuals Online. Topics. The Dell triangle Online marketing Online behavior and interactivity Web users. The Dell Triangle: Figure 4.1. Figure 4.2. Customers use sites more as companies add more interactive content. Online Marketing.

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Internet Marketing

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  1. Internet Marketing Individuals Online

  2. Topics • The Dell triangle • Online marketing • Online behavior and interactivity • Web users

  3. The Dell Triangle: Figure 4.1

  4. Figure 4.2 Customers use sites more as companies add more interactive content Online Marketing • Direct interaction creates customer value and sets the stage for relationship building • This creates opportunities for • personalization • community building • real-time marketing

  5. Online Behavior & Interactivity • Interactivity depends on • Direct communication • Individual choice • Friendly technology • Let’s take a look at each of these

  6. One-to-Many Broadcast (same message to all) Direct Targeting (one direction, different messages) One-to-One Interactive (unique messages to individuals) Direct CommunicationFrom Broadcast to Dialogue Figure 4.3 • Dialogue is possible when there’s direct communication between marketer and customer • Intermediaries can filter or block feedback

  7. Comparing Communication Methods • Hoffman & Novak (1996): Compared traditional and online communication methods • They looked at • Communication model: one-to-many  one-to one • Media symmetry: is the information flow symmetric? • Media content: use of text, images, audio, video • Diversity of information: the number of information sources available through the medium (billboards vs. cable TV or the Web) • Communication timing: synchronous vs. asynchronous • Personal interactivity: person-to-person vs. machine-mediated interaction

  8. Comparing Communication Methods • The Web is a flexible technology • It’s evolving into a personal and dynamic communication medium Figure 4.4

  9. Individual ChoiceSelection + Suggestion = Value • The modern economy presents a staggering amount of variety • Typical supermarkets contain 25,000 different items • Variety expands even further without the physical constraints of inventory and shelf space • Choice is confusing without a way to compare, evaluate & select among the huge number of possibilities • New technologies combine selection and suggestion • Enable consumers to make more effective choices

  10. Impact on Consumer Choice

  11. Friendly Technology Technology is technology only if it was invented after you were born • Televisions, radios, telephones, and VCRs have market penetrations > 85% • The Web must become even easier & friendlier to reach the 98% household penetration of TV • As Web access devices becomes more appliance-like, increasing numbers of consumers will be online • Internet marketers must understand consumer behavior online

  12. Figure 4.6 Web Stage and User Challenges • The easiest type of online consumer activity is when loyal and experienced users perform simple tasks • More complicated tasks require marketers to develop better user interfaces • More risky transactions require marketers to establish trust and pay attention to customer needs

  13. The Media Equation Media = Real Life Byron Reeves & Cliff Nass Online Consumer Behavior • Users relate to virtual information in many of the basic social ways they interact with people in their everyday lives • Users treat machines and software like people

  14. Online Consumer Behavior • The human brain isn’t well adapted to 20th century media • New media is engaging old brains Why Are There Social Responses to Information Technology?

  15. Online Consumer Behavior Simple Technological Features Can Elicit Strong Social Responses • Manners are critical in online & computer messages • Good Manners = positive responses • Behavior that is considered rude in real life is considered rude onscreen

  16. Online Consumer BehaviorSocial Cues • E-mail lacks the social cues that a phone conversation or a face-to-face meeting provide • Misunderstandings develop more easily because people it’s harder to judge confusion • People don’t get the signals that make them stop and explain themselves in face-to-face discussion • People tend to use stronger language and express themselves more frankly • And they tend to circulate their thoughts to a much wider audience

  17. Online Consumer BehaviorSocial Cues • Unhappy customers may resort to flaming • E-mail makes it easy to escalate negative word of mouth • Flaming can lead to bad press • Customer service reps have to be careful not to respond similarly • Requires deliberate policy and training

  18. Online Consumer BehaviorCognitive Difficulty • One of the challenges of providing online information is making it accessible to users • Providing effective search functionality is key • Site developers must understand how their users are likely to search and browse

  19. Who’s Online? • High income • Above average education • Heaviest users: 30-49 years old • students & kids also online • seniors & older middle-aged less likely • Gap between male & female is closing • US dominates • wealthiest European & Asian countries coming online quickly

  20. Why DoesIt Matter?

  21. As Time Passes • More people online • More people connecting at higher speeds • More people using the Web to shop and transact business • >40% of those with 4+ years experience on the Web regularly shop and conduct Web commerce • as opposed to only 12% of people who have been online for <1 year

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