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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;

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Chapter 2 the internet micro environment

Chapter 2The Internet micro-environment


Learning objectives
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.


Questions for marketers
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?


The internet marketing environment
The Internet marketing environment

Figure 2.1 The Internet marketing environment



Alternative models of the value chain
Alternative models of the value chain

Figure 2.2 Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model


A value network
A value network

Figure 2.3 Members of the value network of an organisation

Source: Adapted from Deise et al. (2000)


Disintermediation
Disintermediation

Figure 2.4 Disintermediation of a consumer distribution channel showing: (a) the original situation, (b) disintermediation omitting the wholesaler, and (c) disintermediation omitting both wholesaler and retailer



Reintermediation
Reintermediation

Figure 2.6 Reintermediation process: (a) original situation, (b) reintermediation contacts


Countermediation
Countermediation

  • Creation of a new intermediary

  • Example:

    • B&Q www.diy.com

    • Opodo www.opodo.com

    • Boots www.wellbeing.comwww.handbag.com


Alternative online trading locations
Alternative online trading locations

Figure 2.7 Different types of online trading location




Different business model perspectives
Different business model perspectives

Figure 2.10 Alternative perspectives on business models



Assessing demand
Assessing demand

  • Need to assess:

    • Access to Internet

    • Proportion of customers influenced by channel

    • Proportion of customers who buy direct


Global population with internet access
Global population with Internet access

Figure 2.12 Percentage of global population with Internet access

(based on Nua and Cyberatlas compilations at www.nua.ie/surveys and www.cyberatlas.com)


Global variation in internet access
Global variation in Internet access

Figure 2.13 Global variation in number of PCs per hundred population and percent Internet access in 2000

Source: ITU (www.itu.int)


Uk adoption of different media
UK adoption of different media

Figure 2.14 UK rate of adoption of different new media, base c. 4000 GB adults aged 15+, December 2001

Source: e MORI Technology Tracker, January 2002. Seehttp://www.e-mori.co.uk/tracker.shtml for details


Internet user demographics
Internet user demographics

Figure 2.15 Summary of current demographic characteristics of Internet users, base 1673 GB Internet users aged 15+, January 2002

Source: e MORI Technology Tracker, January 2002. Seehttp://www.e-mori.co.uk/tracker.shtml for details


Variations in access to new media social group
Variations in access to new media – social group

Figure 2.16 Summary of variation in different access to new media according to

social group, base 4222 GB adults aged 15+, January 2002

Source: e MORI Technology Tracker, January 2002. See http://www.e-mori.co.uk/tracker.shtml for details


Different types of internet access location
Different types of Internet access location

Figure 2.17 Different types of Internet access location

Source: The Internet Monitor, BMRB, www.bmrb.co.uk


A pyschographic segmentation
A pyschographic segmentation

Figure 2.18 Psychographic segmentation for Web users

Source: Netpoll (www.netpoll.net)


Percentage of online shoppers by product category
Percentage of online shoppers by product category

Figure 2.19 Percentage of online purchasers by product category

Note: There are 9.9 million online shoppers (54% of Internet users aged 15+)

Source: The Internet Monitor, BMRB, November 2001 (www.bmrb.co.uk)


Percentage of businesses with internet access
Percentage of businesses with Internet access

Figure 2.20 Percentage of businesses with Internet access

Note that results are weighted by business size and that some countries are included for different years

Source: DTI, 2001


Businesses that identify suppliers online
Businesses that identify suppliers online

Figure 2.21 Percentage of businesses that identify suppliers online by business size

Source: DTI, 2001


Competitor benchmarking
Competitor benchmarking

  • Activity

    • You are e-commerce manager within easyJet

    • Which criteria would you use to compare a competitor’s online offering? Group them under five or six headings

    • Conduct an assessment of your services against competitors such as Buzz, Ryanair and British Midland



Intermediaries
Intermediaries

Table 2.5 The most visited sites in the UK



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