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INTRODUCTION

INTRODUCTION. Internet Marketing 15.823 Professor Glen L. Urban Spring 2001. WELCOME. EXCITING TIME -- New Technology LIFE CYCLE -- State of the Art WHAT’S NOT WORKING -- WHAT IS LESSONS OF BIRTH PHASE EXPECTATIONS OUTLINE OF COURSE. Life Cycle of Technology. Birth. Growth. Maturity.

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INTRODUCTION

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  1. INTRODUCTION Internet Marketing 15.823 Professor Glen L. Urban Spring 2001

  2. WELCOME • EXCITING TIME -- New Technology • LIFE CYCLE -- State of the Art • WHAT’S NOT WORKING -- WHAT IS • LESSONS OF BIRTH PHASE • EXPECTATIONS • OUTLINE OF COURSE

  3. Life Cycle of Technology Birth Growth Maturity

  4. BIRTH PHASE • High Expectations • Gold Rush • Claim the High Ground -- Grow Big Fast • Get Sales then Worry About Profit • Ready Venture Capital • Natural Experimentation

  5. BIRTH PHASE (continued) • Substitution with Technology • Information (search engines) • Catalogues • Self service • Early Innovation • Shopping malls • Supply chain • Aggregation • Price

  6. WHAT’S NOT WORKING • Pure Play B2C • High acquisition cost • Low Conversion, Repeat, Repurchase, Margins • Advertising Model • Small Audience • Click Through and cost/000 down • Exchanges • Not Include channel Players • Little Solution/Decision Content • Technology Play Only • Buzz

  7. WHAT’S WORKING • Large Volume Branded Sites • Portals • 2nd generation eTailers • Reverse and Commodity Auctions • Transaction Fee Models • Clicks and Mortar • Infrastructure -- software, computers, networks

  8. INDUSTRIES REVOLUTIONIZED • Stock Trading • Autos • Travel • Telecom/Computers • Games

  9. LESSONS • Fundamentals • Value to customer • Technology Link to Customer Need • Business Model - ROI • Operations • Reliability/Scalability • fulfillment/service • Finance • Do not Be Over Influenced by $$$ • Realism -- Contingency Plan

  10. MORE LESSONS • Marketing • Core Benefit Proposition • Selling is Tough Job • Allocate Resources Here • Innovation • Internet Speed is High Risk • Adoption May be Slow • Need Structured Process

  11. EXPECTATIONS Growth Birth Mature

  12. EXPECTATIONSGROWTH PER YEAR B2B +B2C • 0-10% • 10-25% • 25-50% • 50-75% • 75-100% • Over 100%

  13. VIEWS OF THE INTERNET • Direct Mail / Catalog Substitute • Advertising Enhancement • Magazine/Newspaper Substitute • New Information Source • An Additional Store • New Channel / Relationship • New World

  14. GROWTH DRIVERS • Customer Experience -- Recommendations and Personalization • Profit -- ROI • Community • Established Firms • eMarketing -- Sales Productivity and CRM • Technology -- wireless/broadband • Trust

  15. SUMMARY • Bright Future for Growth • Profit Opportunities • Good Fundamental Management Required

  16. COURSE REVIEW • Outline • Cases • Projects

  17. Understanding Customers Consumer Behavior B2C vs B2B Strategy Formulation Trust vs. Push Product Design Segmentation Positioning Customer Acquisition Advertising / PR/Selling Pricing & Promotion Distribution Channel Logistics Relationship Building Fulfillment Service

  18. STRATEGIC QUESTIONS • Why are people buying on the Internet/why is conversion rate so low? • Trust Based Marketing-- When to use it? • Are there any opportunities left? How do you find them? • Is personalization and one to one marketing the ultimate segmentation? • How do we compete if we are not the first entrant?

  19. STRATEGIC QUESTIONS (CONT.) • What are the roles of Advertising and Selling in eMarketing success? • Is Internet Marketing going to be a price game only? • Is a separate company the only way to solve the Internet channel conflict? • Will single sources (portals/mega retailers) own the customer relationship? • What is the next wave in Internet Marketing and how do you ride it?

  20. ADMINISTRATION • TA’s • Ben Gibbon • Sebastian Periera • Shyan Wen • Srinath Narayanan • URL

  21. FEEDBACK • Evaluation • project (group) -- 40% • class participation -- 20% • case discussion -- 40% • Student Feedback • To TA’s • Mid Course Input • Final Course Evaluation

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