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Internet Marketing Internet Marketing Plans A Dynamic Virtual Chapter http://www.swcollege.com/marketing/hanson/hanson.html Topics Online demographics Online commerce statistics Online marketing costs Internet marketing plan checklist Online Demographics

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Internet Marketing

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Internet marketing l.jpg

Internet Marketing

Internet Marketing Plans

A Dynamic Virtual Chapter

http://www.swcollege.com/marketing/hanson/hanson.html


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Topics

  • Online demographics

  • Online commerce statistics

  • Online marketing costs

  • Internet marketing plan checklist


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Online Demographics

Most of the world is still not online!

  • Key usage drivers are income, education, computer ownership, residence, and age.

  • Internet usage rises sharply with household income

  • The more educated someone is, the more likely they are to be online

  • Internet usage varies dramatically by the region of the country and region of the world

  • Middle-age heads of households are most likely to be online, followed by younger households and trailed by seniors


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Online Demographics

Income

  • Income is a strong positive driver of Net access in all regions of the country

    • High income groups have influenced the success of infant industries such as online trading

  • There is a concern of a "digital divide" between rich and poor

    • Lower income individuals have a much lower rate of online use

    • They are unable to reap the benefits of the Internet


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Internet Usage Based on Education and Region

Online Demographics

Education

Quotable Quote:

Early adopters of the Net are the most educated members of society. As the Net diffuses to a wider audience, ease of use and simplicity become even more important. The Net needs to be more "appliance-like".


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Online Demographics

Region

  • Internet use varies greatly by region of the country

  • Alaska has the highest usage; the South has the lowest

  • Long, dark winters may lead to more usage – Finland is the most wired country in the world


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Internet usage based on gender and place of connection

Online Demographics

Gender

The gender gap that characterized the early years of the Net is rapidly closing


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Online Demographics

Usage Continues to Grow


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Online Demographics

International Access Lags Behind the US

Percent of population with Internet access at home or at work (1998)


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Online Commerce Statistics

Top 20 E-Tailers of June 1999

Source: PC Data Online


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Top 10 Affiliate Programs, April 1999

  • AutoFusion’s Car Prices.com

  • Strange News Ticker

  • Music Boulevard

  • Amazon.com

  • One & Only Internet Personals

  • Lending Tree

  • Reel.com

  • All-Hotels.com

  • Info-Links Network

  • iSyndicate

Source: refer-it

Online Commerce Statistics

  • Affiliate programs, such as Amazon Associates, combine the business model and network phenomena.

  • They have a direct tie to e-commerce because you don't get a fee unless a sale is made.


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Online Commerce Statistics

Consumers told Greenfield Online the best features of online shopping are the abilities to quickly and easily compare prices and shop at any time.


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Online Commerce Statistics

  • By the end of 2002, $2.8 billion will have been spent worldwide on e-commerce software.

  • 78 percent of this total will derive from from investment in distribution channel management, online procurement, and supply chain management (business-to-business e-commerce solutions).

  • Business-to-consumer e-commerce, which in 1997 made up 41 percent of e-commerce software revenues, will in 2002 account for just 22 percent.


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Online Commerce Statistics

  • Business-to-business e-commerce focuses not so much on revenue generating as increasing efficiency of business processes. Now, smaller and medium-sized enterprises can benefit through increased efficiency and disintermediation of the supply chain.

  • The true value of business-to-business e-commerce comes when other businesses adopt such solutions. When suppliers and buyers using e-commerce form relationships, both can reduce their costs.

  • Relationships with business partners will be vital. Companies will only invest if there are enough other enterprises investing, otherwise the technology will be of no use.


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Online Commerce Statistics

Source: Data Monitor


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Online Commerce Statistics

More Travelers Booking Online

  • Nearly one-third of Internet users who visit travel-related Web sites have made online reservations at those sites, according to a study by NPD Online Research.

  • BUT. . .

  • A majority of Internet travelers still divert the confirmation of their travel reservations to traditional travel agents.


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Online Commerce Statistics

Source: NPD Online Research


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Online Marketing Cots


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Online Marketing Costs

  • As software tools become powerful and more available, simple web tasks are easy and cheap to perform

  • BUT. . .

  • Increasing customer expectations lead to increasing costs

  • AND. . .

  • The cost of web design talent is also increasing


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Online Marketing Costs

A Host For Your Site

  • A web host has its own collection of servers, services, support staff and infrastructure for your company to use on a subscription basis.

  • For a set up fee of $50-$100 and monthly charge of $20+, you receive your own domain name (www.mycompany.com) and your own IP address (123.456.78.90).


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Online Marketing Costs

A Host For Your Site

Hosting services include:

  • File storage

  • Data transfer

  • Tech support

  • POP mailboxes

  • Access to CGI and Java scripts

  • Microsoft FrontPage extensions

  • E-commerce tools such as shopping cart software and secure credit card transfers

  • Support for multimedia add-ons


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Online Marketing Costs

A Host For Your Site

Benefits of Web Hosting

  • Reliability for mission-critical Web activities

  • Faster, better Web access

  • Reduced costs

  • Added functionality

  • Extensive tech support and assistance

  • Domain-name identity


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Online Marketing Costs

Development Costs Are On the Rise

Source: NetMarketing


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Distribution of Costs

Online Marketing Costs

  • The development of a serious e-commerce site costs an average of $1 million according to The Gartner Group.

  • Labor is the most important cost driver, and time to market can be considerable.


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Internet Marketing Plan Overview

  • An Internet marketing plan

    • Is a specific implementation of the opportunities, tradeoffs, and strategies presented in the text

    • Outlines a set of goals

  • Two options:

    • Embedded plans include web-related decisions and impacts and are a part of a general marketing plan

      • Best for long-term analysis or when online activities are part of an integrated marketing approach

    • Stand-alone plans analyze and discuss Net activities separately from the full range of marketing department activities

      • Best for analyzing specific campaigns, Web enhancements or “Dot coms”


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Traffic Building

  • Traffic is an asset

  • Traffic is getting more expensive and difficult to generate as online competition increases

  • Retaining traffic is very valuable

    • Stickiness, duration of visits & repeat visits are all important

  • Traffic building strategies should reinforce basic branding positions

  • Traffic building uses a wide variety of tools that should be synchronized


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Traffic Building

Traffic-Driving Tools

  • Banners are popular but effectiveness is questionable

  • Big winners:

    • Affiliate programs

    • E-mail

    • PR

  • The winners all take advantage of network effects (Metcalfe’s Law)


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Traffic Building

Advertising Media Selection

  • Brand building works best on TV and radio

  • The total amount spent promoting sites is growing and shifting toward off-line advertising and e-mail

  • More mainstream Net use means more mainstream promotion methods can be used

  • E-mail is showing higher conversion rates than online banners

  • Bandwidth still prevents “TV-like” ads online


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Traffic Building

Top Sites

  • Looking at the most popular online sites shed light on the range of traffic-driving results

  • The top sites are portals, but there are some unusual top-ranked sites that aren’t general purpose Web locations

  • Take a look at

    • Media Metrix’s Top Sites

    • Nielsen’s Top Sites


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Full Banner

468x60 pixels

Full Banner with

Vertical Navigation Bar

392x72 pixels

Half Banner

234x60 pixels

Traffic Building

Nuts and Bolts: Banner Formats

The Internet Advertising Bureau/CASIE helps standardize the main banner templates


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Button 1

120x90 pixels

Square Button

125x125 pixels

Half Banner

234x60 pixels

Button 2

120x60 pixels

Micro Button

88x31 pixels

Traffic Building

Nuts and Bolts: Banner Formats

The Internet Advertising Bureau/CASIE helps standardize the main banner templates


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Traffic Building

Search Engines

  • Search engines provide free traffic without the need for ads, alliances, and sponsorships

  • Yet they’re a source of frustration and mystery

    • How do they work?

    • Is it really possible to buy your way up the list?

    • What makes them tick?

  • Resources that can help:

    • Search Engine Watch

    • Northern Webs tutorial


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Net Marketing Tutorials

Provide Hands On Experience

  • Check out the tutorials at http://www.swcollege.com/marketing/hanson/hanson.html


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