CHAPTER 1 The Journey Begins…

1. CHAPTER 1The Journey Begins… From e-Business to e-Commerce To e-Marketing

2. Learning objectives • Evaluate the relevance of the Internet to the modern marketing concept; • distinguish between Internet marketing, e-marketing, e-commerce and e-business; • identify the key differences between Internet marketing and traditional marketing; • assess how the Internet can be used in different marketing functions

3. Questions for marketers • How significant is the Internet as a marketing tool? • How does Internet marketing relate to e-marketing, e-commerce and e-business? • What are the key benefits of Internet marketing? • What differences does the Internet introduce in relation to existing marketing communications models?

4. The impact of the Internet • Andy Grove, Chairman of Intel, one of the early adopters of e-commerce, has made a meteorological analogy with the Internet. He says: • Is the Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business? (Grove, 1996)

5. The impact of the Internet

6. The Internet’s impact on you? • How many of you have purchased something on the Internet in the last 6 months? • How many times have you used the Internet as an information source, before buying offline?

7. Demand – Internet access Figure: Global variation in number of PCs per hundred population and percent Internet access in 2000 Source: ITU (www.itu.int)

8. How does the Internet contribute to marketing? • The definition of marketing by the Chartered Institute of Marketing (http://www.cim.co.uk/) is: • Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability

9. What is e-marketing? • E-marketing is: • Applying… • Internet and other digital technology… • (web, e-mail, wireless, iTV, databases) • to… • acquire and retain customers • (through a multi-channel buying process • and customer lifecycle) • by… • Improving customer knowledge, targeting, • service delivery and satisfaction

10. E-business and e-commerce Figure: The distinction between buy-side and sell-side e-commerce

11. Relationship between e-commerce and e-business Figure: Three alternative definitions of the relationship between e-commerce and e-business

12. Internet marketing contexts Figure: Summary of transaction alternatives between businesses and consumers

13. Internet applications Figure: Market and product strategic grid

14. How it works - components Figure: Infrastructure components of the Internet

15. Internet, intranet and extranet Figure 1.12 The relationship between access to intranets, extranets and the Internet SOURCE: Chaffey (2003): Internet Marketing, 2nd edition, Pearson Education Limited

16. Interactivity and intelligence Figure: Summary of communication models for: (a) traditional media, (b) new media

17. Individualization Figure: Summary of degree of individualisation for: (a) traditional media (same message), (b) new media (unique messages and more information exchange between customers)

18. Integration Figure: Channel requiring integration as part of integrated e-marketing strategy

19. Mixed-mode buying Figure: The role of mixed-mode buying in Internet marketing

20. Conversion marketing Figure: A model of the Internet marketing conversion process

21. Conversion marketing - example Figure: An example of the conversion process