Understanding Modern Marketing Strategies for Business Growth

1. Internet Marketing

2. What Is Marketing? • An activity in which firms gather information about their customers • To uncover present customer needs and anticipate future ones • To use the information to develop strategies to satisfy these needs at a profit • It is the enterprise-wide generation of market intelligence pertaining to current and future customer needs • Success in marketing depends on the responsiveness of the firm to this information

3. Marketing • Traditional marketing • Market segmentation • Direct marketing • Relationship marketing • One-to-one marketing

4. Traditional Marketing • The traditional marketing model for mass media assumes a broadcast model • Communication with the marketplace is “one–to–many” • A firm transmits content through a medium to a large group of consumers • This content must be carefully homogenized • A key assumption of this models is that there is no direct interaction between consumers and firms • The communication is typically brief and one way

5. Market Segmentation • Target marketing • A marketing technique that targets a group of customers with specific characteristics • Segmentation is the process of directing all marketing efforts at a particular group of potential customers( by Mississippi University State Extension Service) • For example, Rolex directs the marketing of its watches to upscale customers who are very brand conscious

6. Consumer Purchase Decision Process • Prepurchase steps • Awareness of need for purchase • Identify basic need or want • Actual purchase • Establish decision criteria • Seek recommendations and information • Make purchase • Postpurchase steps • Assistance with installation or setup • Online help desks and instruction manuals

8. EC Consumer Behavior Model • The purchasing decision process is triggered by a consumer’s reaction to stimuli • The process is then influenced by the buyer’s characteristics, the environment, the technology, the EC logistics and other factors

10. Consumer Types • Individual consumers • Commands most of the media’s attention • Organizational buyers • Governments and public organizations • Private corporations • Resellers

11. Purchasing types and experiences • 2 dimensions of shopping experiences • Utilitarian—to achieve a goal • Hedonic—because it’s fun • 3 categories of consumers • Impulsive buyers—purchase quickly • Patient buyers—make some comparisons first • Analytical buyers—do substantial research before buying

12. Roles people play in decision-making • Initiator • Suggest/thinkof buying a particular product or service • Influencer • Advice/view carry weight in making a final buying decision • Decider • Make a buying decision or any part of it • Buyer • Make the actual purchase • User • Consumeor use a product or service

13. Purchasing decision-makingModel • Need identification • Actual and desired states of need • Information search • Alternatives evaluation • Research reduces number of alternatives, may lead to negotiation • Purchase and delivery • Arrange payment, delivery, warranties, etc. • After-purchase evaluation • Customer service

15. One-to-one Marketing • Relationship marketing • “Overt attempt of exchange partners to build a long term association, characterized by purposeful cooperation and mutual dependence on the development of social, as well as structural, bonds” • “Treat different customers differently” • No two customers are alike

17. Essence of One-to-one Marketing • Customer loyalty • Customer trust in EC • Personalization • Customer relationship management

18. Customer Loyalty • Customer loyalty • Degree to which customer stays with vendor or brand • Important element in consumer purchasing behavior • One of the most significant contributors to profitability • Increase profits • Strengthen market position • Become less sensitive to price competition • Increase cross-selling success • Save costs, etc.

19. Customer Loyalty (Cont.) • Meeting customers cognitive needs—organize customer service to meet needs of each skill set • Novice • Intermediate • Expert • E-loyalty—customer’s loyalty to an e-tailer • Learn about customers’ needs • Interact with customers • Provide customer service

20. Customer Trust in EC • Trust in EC • Deterrence-based trust—threat of punishment • Knowledge-based trust—grounded in knowledge about trading partners • Identification-based trust—empathy and common values between partners • Value of EC referrals • Word-of-mouth • Delivery of good or service sparks other users

22. Personalization • Process of matching content, services, or products to individuals’ preferences • Alternative methods • Solicit information from users • Use cookies to observe online behavior • Use data or Web mining • Personalization applied through • Rule-based filtering • Content-based filtering • Constraint-based filtering • Learning-agent technology

23. Personalization (cont.) • Collaborative filtering examples • Backfilp.com—recommends restaurants • C5solutions.com—personalized messages via cell phones • Mysimon.com—assists in purchase decision-making process based on user information • Legal and ethical issues • Privacy issues • Permission-based personalization tools