Introducing Internet Marketing

1. Part 1 I.T.C.G. “Leonardo da Vinci” Piazza Armerina, a.s. 2009-2010 Introducing Internet Marketing

2. Objectives • Subject Overview • The Internet and the marketing concept • Benefits of the Internet for businesses • The new marketing medium • Internet marketing communications • Internet Marketing strategies

3. Subject Overview • General Aim and Rationale – the utility of the Internet as a tool for business to increase efficiency, competitiveness, and effectiveness. • Objectives • Content • Assessment criteria

4. The Internet and the Marketing Concept • Two distinct meaning for marketing • The range of specialist marketing functions carried out by the firm (marketing research, public relations..) • An approach or concept that can be used as the guiding philosophy for all functions and activities • The modern marketing concept unites these two meanings.

5. The Internet and the Marketing Concept • The Internet can be applied by companies as an integral part of the modern marketing concept since: • It can be used to support the full range of organizational functions • It is a powerful communication medium that integrates the different parts of the organization • It facilitates information management • The future role of the Internet would form part of the vision

6. Internet Marketing Defined • The use of the Internet and related digital technologies to achieve marketing objectives and support the modern marketing concept. • Electronic commerce transactions are the trading of goods and services conducted using the Internet and other digital media

7. Business Benefits of the Internet • Market penetration – sell more existing products into existing markets • Market development – Internet is used to sell into new markets • Product development – New products or services developed which can be delivered over the Internet • Diversification – New products are developed which are sold into new markets

8. Market and Product Strategic Grid Conservative Approach Innovative Approach New Market Existing Existing New Product

9. Marketing Functions & The Internet • Sales – achieve through increasing awareness of brands and products, supporting buying decisions and enabling online purchase • Marketing communication – use of the web site for a range of marketing communication • Customer service – supplementing phone operators with information available online • Public relations – the Internet can be used as a new channel for public relations (publish latest news on products) • Marketing research – techniques of finding a range of marketing information

10. The 6 Cs’ of the Internet • Cost reduction – reducing the need for sales and marketing enquiries to be handled by telephone and producing printed marketing communication material • Capability – The internet provides new opportunities for new products and services and for exploiting new markets • Competitive advantage – First mover advantage • Communications improvement – improved communications with customers, staff, suppliers • Control – Better marketing research through tracking customer behavior • Customer service improvements – Interactive queries of databases containing stock availability or customer service questions

11. The Internet – A New Marketing Medium • The Internet refers to the physical network that links computers across the globe. It consists network servers and wide-area communication links that are used to hold and transport information. • World Wide Web is a medium for publishing information on the Internet. • Intranet is a password protected network within a single company which enables access to company information using the familiar tools of the Internet such as web browsers. • Extranet is formed by extending the intranet beyond a company to customers, suppliers, collaborators or even competitors.

13. For example:James lives is Dublin and is looking for a digital camera... The first thing he’ll do is go to Google and type in the search bar: “digital cameras dublin”

14. You will then see TWO types of results: 1. Organic or Natural 2. Paid results

16. # 3

20. Internet Marketing Communications • Characteristics inherent in digital medium: • The customer initiates contact • The customer is seeking information (pull) • It is a high intensity medium – the marketer will have 100 per cent of the individual’s attention when he or she is viewing a web site • A company can gather and store the response of the individual • Individual needs of the customer can be addressed and taken into account in future dialogues

21. Old and New Media

22. Avoiding Marketing Myopia • Traps that should be avoided when embarking on Internet marketing: • Wrongly defining which business they are in • Focusing on: • Products rather than customer • Production • Technology (only an enabler, not an aim) • Selling (the culture of the Internet is based on customer seeking information to make informed buying decisions) • Customer needs (the need for market orientation is a critical aspect of web site design and Internet marketing strategy) • Market opportunities (new opportunity for adding value rather than just another channel)

23. Avoiding Marketing Myopia • Unwillingness to innovate and ‘creatively destruct’ existing product/service lines • Shortsightedness in terms of strategic thinking • The lack of a strong and visionary CEO (Baker (1998) found that this was important to companies’ using the Internet effectively) • Giving marketing only ‘stepchild status’, behind finance, production and technology.