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MARKETING ON THE INTERNET The Internet includes a number of data networks set-up by companies and organizations, the World Wide Web and e-mail, plus a multitude of proprietary networks that are gravitating to the web Lindgren 2000 HISTORY OF THE INTERNET

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marketing on the internet
MARKETING ON THE INTERNET
  • The Internet includes a number of data networks set-up by companies and organizations, the World Wide Web and e-mail, plus a multitude of proprietary networks that are gravitating to the web
          • Lindgren 2000
history of the internet
HISTORY OF THE INTERNET
  • Vannevar Bush, VP of MIT -- visionary; appointed by Franklin Roosevelt
  • Ted Nelson (1965): XANADU >had the theoretical underpinnings of hypertext
  • US Dept. of Defense: ARPANET (Advanced Research Projects Agency Network)>>used the TCP/IP (Transmission Control Protocol/Internet Protocol)
history of the internet 2
HISTORY OF THE INTERNET(2)
  • NSFnet (National Science Foundation)
  • 1989: Time Bernes-Lee of CERN (European Particle Physics Lab)>>
    • HTML(HyperText Markup Language)
    • URL (Uniform Resource Locator)
    • HTTP (Hypertext Transport Protocol)
      • >>important elements of todays internet
requirements for growth of the internet
REQUIREMENTS FOR GROWTH OF THE INTERNET
  • Electronic Commerce
    • businesses have to develop electronic commerce intranets and extranets that connect to the internet
  • Network Server Growth
    • Internet hosts or Internet Service Providers (ISP): 1000 in 1990>>>90 million in Jan, 1999
  • Sufficient number of consumers must have access to the internet
improving business practices usingthe internet
IMPROVING BUSINESS PRACTICES USINGTHE INTERNET
  • REDUCED COSTS
    • FedEx>>customer service costs
    • CISCO>>up to date information on products; for frontline employees and customers
    • GE>>analysis of the supply chain
    • Online data versus printed information (especially important for direct marketers)
    • Market expansion is much easier, faster, and less expensive
improving business practices usingthe internet 2
IMPROVING BUSINESS PRACTICES USINGTHE INTERNET (2)
  • INVENTORY REDUCTION
    • implementation of Just-in-Time delivery systems>>Amazon.com
  • IMPROVED CUSTOMER SERVICE
      • FedEx; CISCO; Wells Fargo Bank
  • MARKET/PRODUCT DEVELOPMENT OPPORTUNITIES
    • 24 hours; global reach; small or large company
types of internet sites
TYPES OF INTERNET SITES
  • Company/Brand Sites
    • info. about co. and its brands; history, mission, financial statements; how to use products; stock quotes
  • Service Sites
    • to provide customer service interface; to reduce customer service costs
    • Banks, FedEx, UPS
types of int sites 2
TYPES OF INT. SITES (2)
  • Selling sites
    • Amazon.com;L.L.Bean>>to actually sell
    • promotional sites
    • DaimlerChrysler Site>>to move potential buyer closer to purchase
  • Information sites
    • revenue through subscription (WSJ); Advertising (search engines like Yahoo); or to express presence (CNNSI, New York Times)
benefits of internet marketing
BENEFITS OF INTERNET MARKETING
  • Increase presence and brand equity
  • Develop prospective customer into customer>> move toward purchase; internet is pull oriented, not push oriented
  • Improve customer service
  • Information transfer>>easier to send and collect information
  • Supports direct marketing
drawbacks of internet marketing
DRAWBACKS OF INTERNET MARKETING
  • Limited target audience
    • around 73 mill. users in the US (1999)
    • what about others?
  • Resistance to change
    • concern about Internet security
    • need more consumer education, warranties and other security measures
marketing insights on the internet
MARKETING INSIGHTS ON THE INTERNET
  • Selling on the web is interactive
  • Promotion on the web is pull-oriented
  • Exchange of information is key
    • two way flow
  • Sites must do more than just sell
    • need assessment, information, assistance, etc.
  • Size and location are no longer obstacles to success
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