1 / 33

Chapter 2 The Internet micro-environment

Chapter 2 The Internet micro-environment. Learning objectives. Identify the different elements of the Internet environment that impact on an organisation’s Internet marketing strategy. Assess competitor, customer and intermediary use of the Internet.

tdugan
Download Presentation

Chapter 2 The Internet micro-environment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 2The Internet micro-environment

  2. Learning objectives • Identify the different elements of the Internet environment that impact on an organisation’s Internet marketing strategy. • Assess competitor, customer and intermediary use of the Internet. • Evaluate the relevance of changes in trading patterns and business models enabled by e-commerce.

  3. Questions for marketers • How are the competitive forces and value chain changed by the Internet? • How do I assess the demand for Internet services from customers? • How do I compare our online marketing with that of competitors? • What is the relevance of the new intermediaries?

  4. Figure 2.1 Increase in traffic volume at Handbag.com in selected months when audited. Page impressions are pages served to visitors, visitor sessions are visits up to a maximum of 30 minutes and unique visitors is the number of individuals visiting the site in a given month Source: Compiled from ABC Electronic (ww.abce.org.uk)

  5. Figure 2.2 The IMRG retail index shows online sales volume in the UK relative to 100in April 2000 Source: Interactive Media in Retail Group (www.imrg.org)

  6. The Internet marketing environment Figure 2.3 The Internet marketing environment

  7. Porter’s five forces (or use Fig 2.3)

  8. Figure 2.4 Value creation model

  9. Alternative models of the value chain Figure 2.5 Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model

  10. A value network Figure 2.6 Members of the value network of an organisation Source: Adapted from Deise at. (2000)

  11. Disintermediation Figure 2.7  Disintermediation of a consumer distribution channel showing: (a) the original situation, (b) disintermediation omitting the wholesaler, and (c) disintermediation omitting both wholesaler and retailer

  12. See www.screentrade.co.uk Figure 2.8  Screentrade insurance intermediary (www.screentrade.com)

  13. Figure 2.9  From (a) original situation to (b) disintermediation or(c) reintermediation or countermediation

  14. Figure 2.10  Example of a channel chain map for consumers selecting an estateagents to sell their property

  15. Countermediation • Creation of a new intermediary • Example: • B&Q www.diy.com • Opodo www.opodo.com • Boots www.wellbeing.comwww.handbag.com

  16. Alternative online trading locations Figure 2.11  Different types of online trading location

  17. Figure 2.12  Alternative perspectives on business models

  18. Assessing customer demand Need to assess: • Access to Internet • Proportion of customers influenced by channel • Proportion of customers who buy direct See Chapter 4

  19. Figure 2.13  A model of the Internet marketing conversion process

  20. Figure 2.14  An example of a conversion model

  21. Figure 2.15  Global variation in number of PCs per hundred population and percentage Internet access in 2004 Source: ITU (www.itu.int)

  22. Figure 2.16  UK rate of adoption of different digital media Source: MORI Technology Tracker, September 2006. See www.mori.com/technology/techtracker.shtml for details

  23. Figure 2.18  The most popular search terms typed into a search engine that resulted in traffic to www.ba.com, four weeks ending 18.03.06 Source: Hitwise (www.hitwise.co.uk)

  24. Figure 2.18  The most popular search terms typed into a search engine that resulted in traffic to www.ba.com, four weeks ending 18.03.06 (Continued) Source: Hitwise (www.hitwise.co.uk)

  25. Figure 2.19  Summary of demographic characteristics of Internet users Source: (September 2003) MORI Technology Tracker. See www.mori.com/technology/techtracker.shtml for details

  26. Figure 2.20  Summary of variation in access to the digital media according tosocial group Source: (September 2005) MORI Technology Tracker. See www.mori.com/technology/techtracker.shtml for details

  27. Figure 2.21  Percentage of businesses that order online Source: DTI (2004)

  28. Figure 2.22  Development of experience in Internet usage

  29. ‘Explorer’ Browsing ‘Hunter’Researching ‘Tracker’Completing Define requirements Select supplier(enquire) ‘What’s out there’ Destination purchase(buy) Assess supplier capabilities ‘Inspireme’ Undirected, exploratory Directed goal-oriented Source: Author

  30. Figure 2.23  A summary of how the Internet can impact on the buying process for a new purchaser

  31. Figure 2.24  Initial product search showing e-retailers available

  32. Figure 2.25  Comet product comparison facility (www.comet.co.uk)

  33. Figure 2.26  Kelkoo.com, a European price comparison site

More Related