Mark 404 advanced internet marketing
Download
1 / 74

MARK 404 Advanced Internet Marketing - PowerPoint PPT Presentation


  • 276 Views
  • Uploaded on

MARK 404 Advanced Internet Marketing. Tim Beal Session 2 – 15 July 2002. Today. Administration Overview of the Internet. Administration. Allocation of sessions Topics Any other business?. Overview of the Internet and Web. Hanson chapter 1 With comments and disagreements

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'MARK 404 Advanced Internet Marketing' - MartaAdara


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Mark 404 advanced internet marketing l.jpg

MARK 404 Advanced Internet Marketing

Tim Beal

Session 2 – 15 July 2002


Today l.jpg
Today

  • Administration

  • Overview of the Internet


Administration l.jpg
Administration

  • Allocation of sessions

  • Topics

  • Any other business?


Overview of the internet and web l.jpg
Overview of the Internet and Web

  • Hanson chapter 1

    • With comments and disagreements

    • Updated and additional material


Hanson s topics l.jpg
Hanson’s Topics

  • The original WWW

  • Commercial beginnings

  • A .com world

  • Marketing and technology

  • Our approach in the book


Radio revolution l.jpg
Radio revolution

  • Hanson compares WWW with radio revolution

  • First consider two main aspects of Internet

    • Email

    • WWW

  • Differences between two

  • Necessity to utilize both appropriately


Email l.jpg
Email

  • Proactive

    • Needs recipient’s address

      • Spam ineffective because doesn’t have the right recipients

  • Text based

  • Cheap


Slide8 l.jpg
Web

  • Reactive

    • Needs to attract visitors

  • Far greater functionality

    • Multimedia, interactivity, personalisation, transfer of money

  • More expensive

  • Now to Hanson and radio


The original www l.jpg
The Original WWW

  • It’s 1922

  • Radio suddenly transitions from a technology used primarily by the military and the shipping industry to a consumer and business phenomenon

  • At the end of 1921, there are 5 radio stations

  • A year later, there are 575

  • Starting radio stations is the height of entrepreneurship

  • Listening to radio is a runaway consumer fad

  • “Combing the ether” is the hit of the day


The original www10 l.jpg
The Original WWW

  • Radio’s impact on 1920s society

    • It changes the way people think about distance and time

    • Simultaneity no longer requires proximity

    • Global events are experienced as they happen

    • Performances in different cities can be heard in the neighbor’s living room

    • Fast-breaking world stories and even the local weather are available at the flip of a switch and the turn of the dial


The original www11 l.jpg
The Original WWW

  • Radio changed business, especially marketing

    • It accelerated the economy’s transition to a mass market

    • It facilitated the creation of national brands

    • Firms could launch national marketing campaigns simultaneously

    • New product store introductions could be synchronized with ad campaigns to build consumer interest

    • Product positioning became more flexible

  • Businesses learned to use this new, powerful method of reaching customers


The original www12 l.jpg
The Original WWW

  • As an industry, radio struggled with generating a self-sustaining revenue base

    • In 1926, radio stations were failing at a rate of 15% per month

    • Consumers still rushed to buy radios

    • Ultimately, national networks of stations emerged

    • A combination of national and local advertising made radio profitable

  • Internet marketing shows many of these same uncertainties


Books to internet l.jpg
Books to Internet

  • Succeeding communication revolutions

  • Printing

    • Books, newspapers

  • Radio

  • TV

  • Internet

  • Discussion: what are similarities and differences?


Hanson on changes l.jpg
Hanson on changes

  • The Internet changes the way companies connect to their customers

  • It expands the opportunities for branding, innovation, pricing, and selling

  • It leads to new ways of thinking about time and distance

  • It opens up new distribution channels and markets


Virtuous web cycle l.jpg
Virtuous Web Cycle

  • Is a business system with positive feedback

  • Each element in the business system feeds off another element in the system and feeds into yet another element in the system

  • If the cycle is strong enough, it can actually be a self-fulfilling expectation


Virtuous cycle for net growth l.jpg

Consumer and Business Internet Access

Popular Fascination

  • Providers see the developing opportunity and rush to create new brands & services, which creates more hype

Web Sites and Web Content

  • The buzz feeds back into consumers’ interest and desire to experiment with the new technology

Virtuous Cycle for Net Growth

Let’s look at how it works


A dot com world l.jpg
A Dot Com World

  • The virtuous Web cycle leads to rapid growth of

    • Consumer access

    • Internet usage

    • Content online


Dot com to dot bomb l.jpg
Dot.com to dot.bomb

  • Hanson’s optimism too glib

  • Much of the effect of Internet has happened offline

    • I.e. bricks and mortar companies using Internet

  • Dot bomb may have peaked

  • But


Slide19 l.jpg
But

  • Internet Shutdowns and Bankruptcies Pass 800 Mark in February

  • And

  • Internet users still not buying online


Nevertheless l.jpg
Nevertheless

  • There ahs been rapid growth in users, hosts, activity…

  • Let’s look at some data



Slide22 l.jpg

Fig 2 Internet Users by region, 2002

Fig 1 Internet Users by region








Internet in asia l.jpg
Internet in Asia markets

  • Japan, though the most developed Asian economy has lagged in utilisation of the Internet and although broadband is growing fast it seems likely this will continue


Internet in asia30 l.jpg
Internet in Asia markets

  • The city states of Singapore and Hong Kong will continue to be the most advanced Internet places in Asia. However other Asian cities should not be overlooked. In particular country data on China tends to give a misleading impression and there are reports of very high Internet access in cities such as Beijing, Shanghai and Guangzhou Perhaps the same is happening in Bangalore, Hyderabad and Karachi


Internet in asia31 l.jpg
Internet in Asia markets

  • Beyond cities and city states South Korea and Taiwan will jostle for leadership in Asia


Internet in asia32 l.jpg
Internet in Asia markets

  • China, with its rapidly growing economy, and its large language area will soon be the major Internet market in Asia. Given the network effect, whereby the value of a network to its users grows exponentially with the size of the network, this has huge implications, especially for East Asian SMEs


Internet users l.jpg
Internet users markets

  • Rich countries?

  • Profile of US users

  • Reasons why other countries may not follow US pattern







Some other key results of this 10 th survey in 1998 were l.jpg
Some other key results of this 10 usersth survey in 1998 were:

  • Race

  • The American respondents were overwhelmingly ‘white’ (88%), followed by Afro-Americans (2.3%) and Asians (2.1%). This can be compared with the ethnic breakdown in the 1990 United States census where 80% were white, 12% black (Afro-American) and 2.9% were ‘Asian or Pacific islander’. Blacks were clearly under-represented in the Internet community


Gvu results location l.jpg
GVU results: usersLocation

  • 33% of the US respondents were urban, 52% suburban and 14% rural. In the 1990 census, 75% of the population were urban and 25% rural. It seems that internet users were disproportionately urban/suburban


Gvu results education l.jpg
GVU results: usersEducation

  • 64% had college or some college, 17% had Masters, 3.4% had a PhD, and 3.5% a professional qualification. In 1990, only 13% of the general population had a Bachelor’s degree and a further 7% had a graduate or professional degree. Internet users were considerably better educated than average.


Gvu results income l.jpg
GVU results: usersIncome

  • Median family income was in the band $50-74, 000. In 1998 the median household income in the United States was $39,744. Survey respondents had significantly higher incomes than average, even though 9.4% were students.


Gvu results occupation l.jpg
GVU results: usersOccupation

  • Trained professional: 28.5%; middle management 11%; student: 9.4%; self-employed: 9.9%, upper management: 6.8%. By comparison, although the categories are different, the 1990 census gave 12% managerial and 14% professional. This suggests, as we would expect, that the Internet users were working in more highly skilled occupations than average


User profile l.jpg
User profile users

  • Users in US, and other mature Internet markets, are now much closer to average

    • Less distinguishable from ordinary population

  • Lessons for follower countries?

    • Process of changing user profile may be quicker

    • Process of adoption may vary in three ways


Variations 1 and 2 l.jpg
Variations 1 and 2 users

  • Leapfrogging of technologies and business models

    • Eg use of wireless overcome shortage of wireline in China

  • Adoption truncation

    • US pattern of tickle down class and education ladder not good guide


Variation 3 l.jpg
Variation 3 users

  • Local variation

    • Internet use affected by

      • Local physical infrastructure

        • Eg broadband cheaper in high density urban places like S, HK and ROK

      • Political, social and cultural constraints

        • Sex has been big driver of internet in US, not likely in Asia

      • Business practices

        • Lack of credit cards in China


Types of websites l.jpg
Types of websites users

  • Static billboards

  • Dynamic billboards

    • updated (advantage over print)

  • Database-driven

    • interactive

    • links customers and products

  • Storefronts

    • e-commerce - purchase, pay (consume) online


Hanson s approach l.jpg
Hanson’s approach users

  • Look at Hanson

  • Comments on website design from SME perspective

    • More relevant to your major assignment


Innovative applications l.jpg
Innovative Applications users

  • Stage I: Publishing sites

  • Stage II: Databases and Forms

  • Stage III: Personalization


Stage i publishing site l.jpg

Info Links users

Pictures/Information

http://www.france98.com/french/index.html

Stage I: Publishing Site

Figure 1.7


Stage i l.jpg
Stage I users

What makes this aStage I Website?

BroadcastsDisseminates Information


Stage ii databases and forms l.jpg
Stage II: Databases and Forms users

Figure 1.8

To find out the travel distances between the host cities:

Select your starting point

Select your destination

Bordeaux

Paris

Toulouse

Marseilles

Toulouse Marseille – 404km


Stage ii l.jpg
Stage II users

What Makes this aStage II Website?

Ability to retrieve information to respond to user requests


Example of database driven site l.jpg
Example of database driven site users

  • Air New Zealand


Stage iii personalization l.jpg
Stage III: Personalization users

Figure 1.11

If you area team WC98 member and are using a computer other than the one you originally joined WC98, enter your nickname and password now.


Stage iii l.jpg
Stage III users

What Makes this aStage III Website?

More than ask-respondAnticipatesSuggests


Example l.jpg
Example users

  • Amazon.com


Consumer to consumer commerce l.jpg
Consumer-to-Consumer Commerce users

  • Businesses deploy chat room technology

    • Enables consumers to interact directly with each other

    • Accelerates word of mouth

    • Facilitates consumer-to-consumer commerce

      • eBay

      • Yahoo! Auctions


Consumer to consumer commerce59 l.jpg
Consumer-to-Consumer Commerce users

  • Consumer-to-consumer sites must build trust

    • Systems that rate seller credibility

    • Verify identities of buyers and sellers

    • Insurance against fraud

    • Escrow accounts to ensure products are shipped

    • Bans on sellers who bid on their own products

    • Bans on buyers who win, but don’t complete the sale

  • Successful auction sites blur the distinction between business and fun


Business to business commerce l.jpg
Business-to-Business Commerce users

  • $ volume much larger than e-tailing, and more rapidly growing

  • Intra & extranets provide a seamless link between businesses and their suppliers

  • Companies create in-depth Web sites for their main customers

    • Special pricing

    • Special configurations

    • Dedicated support

  • This builds loyalty and repeat purchases


Slide61 l.jpg
B2B users

  • Dell computers


Marketing evolves as technology changes l.jpg
Marketing Evolves as Technology Changes users

  • Technological innovation brought about the factory system & enabled mass production

    • Marketing emphasis was on logistics & supply chain management

  • Radio enabled national roll-out of brands

    • Marketing emphasis was on selling

  • Television coincided with the product & brand management system of marketing

  • Mainframe computers enabled new methods of segmentation & customer management

  • The Internet enables mass customization


An internet framework l.jpg

Digital users

Networked

Individuals

Marketing

Internet Marketing

Technology

Economics

An Internet Framework

Figure 1.15

The Web is fundamentally about individuals using a networkto access digitalproducts


Is hanson right l.jpg
Is Hanson right? users

  • Partly, but

  • Much of the Internet effect happens offline

    • For most businesses it is the INTEGRATION of online and offline (Delivery, shop sales, brand…) that is important

  • Purely dot.com firms will always be small part of e-commerce


Smes and internet managerial implications l.jpg
SMEs and Internet – managerial implications users

  • Be wary of ‘technology fetishism’

  • Guiding principle: business objectives come first, technology second

  • Internet is a tool – more simple and sharper the better

  • SME should no be over-awed by technical experts

    • Need understanding of limits, potential and function of technology


3 dimensions of website l.jpg
3 dimensions of website users

  • Websites have 3 dimensions

    • Static, Dynamic, Interactive

  • Interactive

    • Manual

    • Automatic


Interactive l.jpg
Interactive users

  • Manual

    • Contact email

    • Vital that emails are answered

      • Promptly

      • Correctly

  • Does the SME have resources (inc language skills)?

  • Automatic

    • Not so appropriate for SMEs

    • If you can’t afford to do it properly, forget it


Static and dynamic l.jpg
Static and dynamic users

  • Static – not much of a problem

  • Dynamic

    • Offers one of the web’s greatest advantage over traditional media

      • Ease, cheapness and speed of amending

      • Preserves data integrity – always the latest version on display

    • BUT…

    • SME must give highest priority to having as much control and management as possible

      • Even if this means having less ‘attractive’ site


Website design l.jpg
Website design users

  • Catchwords

    • Simplicity

    • Economy

    • Minimalism

  • Guiding principle

    • Ockham’s razor

      • Business objectives and functions achieved in the simplest manner

      • Website commensurate with resources of SME


Internet accelerates modernization l.jpg

Internet users

Hi-tech global firm

N

A

R

R

O

W

B-

F

O

C

U

S

New economy firm

modernisation

Modern firm

B

R

O

A

D

Geographic focus

narrow

broad

Internet accelerates modernization

Traditional crafts


Sme imperatives l.jpg
SME imperatives users

  • Broaden geographical focus

    • Not necessarily global

  • Narrow business focus and develop distinctive competency

  • Constantly analyse environment

    • Technological, political, social

  • Constantly question business model and process

  • Re-examine relationship with customers, suppliers, distribution channels


Sme imperatives72 l.jpg
SME imperatives users

  • Beware of hype surrounding Internet

    • B2C has glamour but,

    • B2B cost savings and efficiency gains

  • Technology does not work on its own

    • Staff training and support vital


Conclusions l.jpg
Conclusions users

  • Internet and other communication revolutions – similarities and differences

  • Rapid growth of Internet

    • Where customers are

    • What customers are like

    • How (US) past is uncertain guide

  • Types of websites

  • Internet and Marketing interaction

  • How SMEs should approach Internet


Next week l.jpg
Next week users

  • Lizzie and Aaron on Chapter 2 – Digital world

  • I will be away in Taiwan Tues-Sun

    • Ensure e-marketing topic is chosen and started on