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Internet Marketing Concepts

Internet Marketing Concepts Week 2 Objectives The new communication medium The Internet and the marketing mix Key elements of effective web site designs Internet marketing versus conventional marketing The Internet as a New Communication Medium

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Internet Marketing Concepts

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  1. Internet Marketing Concepts Week 2

  2. Objectives • The new communication medium • The Internet and the marketing mix • Key elements of effective web site designs • Internet marketing versus conventional marketing

  3. The Internet as a New Communication Medium • Digital, interactive, and a greater depth of information can be published • Demographics may be different • Culture of purchasers may be different • Markets may be different

  4. The Digital Medium of the Internet • Predominantly a pull medium • Enables interaction • Potential for one-to-one or many-to-many communication • The medium changes the nature of advertising • Changes to the distribution channel and marketplace enabled by the digital media

  5. Communication Using the Internet C5 O C1 C4 O M Content M Content Content C2 Internet Medium M M M M Content O O C3 O

  6. The Communication Model N O I S E Receiver (web browser) Message decoding Source (web site) Message encoding Site content or e-mail Feedback (transaction log file)

  7. Cultural Difference • Uses of the Internet in the UK (1998) includes: • Sending email (72 %) • Research (63%) • Education (58%) • Seeking information on products and services (53%) • Hobbies and interests (53%) • Games playing (32%) • Planning holidays (24%) Web reference: NOP Research Group (www.nopres.co.uk)

  8. In Europe and the USA • Average age of user is 35.7 years old • 38.5 % female and 61.5% male (22%, 72% Europe) • 65% access the Web from home (29% Europe) • Average household income $53,000 Web reference: KPMG (www.kpmg.co.uk), GVU (www.gvu.gatech.edu/user_surveys)

  9. Cultural Difference • Techno_lusters – focused in the culture and technology • Academic buffs – originally on of the main types of users • Techno-boffins – similar to the techno-lusters, but make more directed use of the technology for business • Get aheads – use the Internet as a lifestyle accessory, use email and Internet for product selection • Hobbyists – people with specialist interests who use the Internet for purchase selection (golfers…) • Knowledge traders – business oriented users who turn to the Internet for news services and information on best business practice • Business bods – general business users in management roles • Home users – members or families looking for education or purchases

  10. Internet and Marketing Mix Using the Internet to vary the marketing mix Product • Quality • Image • Branding • Features • Variants • Mix • Support • Customer service • Use occasion • Availability • Warranties • Price • Positioning • List • Discounts • Credit • Payment methods • Free or value-added elements • Promotion • Marketing communications • Personal promotion • Sales promotion • PR • Branding • Direct marketing • Place • Trade channels • Sales support • Channel number • Segmented channels • People • Individuals on marketing activities • Individuals on customer contact • Recruitment • Culture/image • Training and skills • Remunera-tion • Processes • Customer focus • Business-led • IT-supported • Design features • Research and development

  11. The buying Process on the Internet Stages in buying process Internet marketing techniques Communications objectives Generate awareness Banner advertising, PR, links Web site content (Plus search support) Search engines, Intermediaries Web site content, Intermediaries Web site content Personalized web Site content and interaction 1. Unaware 2. Aware of product need, develop specification Position Features, benefits and brands Lead generation (from range of customers) 3. Suppliers search 4. Evaluate and select Assist purchase decision 5. Purchase Facilitate purchase 6. Post-purchase evaluation and feedback Support use and retain business

  12. Key Elements of Effective Web Site Design • Capture • Content • Community • Commerce • Customer orientation • Credibility

  13. Alternative Factors • Attract users • Engage users’ interest and participation • Retain users and ensure that they return to the site • Learn about customer preference • Relate back to customers with customized interactions

  14. Internet Marketing vs Conventional Marketing • It is a many-to-many medium • Consumers can interact with the medium • Consumers can provide commercially oriented content to the medium

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