Chapter 1 Introducing Internet Marketing
Learning objectives • Evaluate the relevance of the Internet to the customer-centric, multi-channel marketing concept • Distinguish between Internet marketing, e-marketing, digital marketing, e-commerce and e-business • Evaluate the advantages and challenges of digital media • Identify the key differences between Internet marketing and traditional marketing • Assess how the Internet can be used in different marketing functions
Questions for marketers • How significant is the Internet as a marketing tool? • How does Internet marketing relate to e-marketing, e-commerce and e-business? • What are the key benefits of Internet marketing? • What differences does the Internet introduce in relation to existing marketing communications models?
Warning • Which definition is used isn’t so important, within a company definitions help: • Scope the Internet Marketing activities that need to be managed • Explain opportunities for new marketing approaches – digital transformation • Highlights some risks to be managed
Introducing the scope of Internet Marketing • “Achieving marketing objectives through applying digital technologies” • How? • Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Chartered Institute of Marketing • How?
Customer-centric digital marketing involves: Applying… Digital technologies which form online channels… (Web, e-mail, databases, mobile, iDTV) to… Contribute to marketing activities aimed at achieving profitable acquisition and retention of customers (within a multi-channel buying process and customer lifecycle) through… Improving customer knowledge (of their profiles, behaviour, value and loyalty drivers), then delivering integrated targeted communications and online services that match their individual needs A more in-depth definition
How does the Internet contribute to marketing? • The definition of marketing by the Chartered Institute of Marketing (http://www.cim.co.uk/) is: • Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability Give examples of how the Internet (web and e-mail) achieves these?
How the Internet supports marketing • Identifying – the Internet can be used for marketing research to find out customers’ needs and wants (Chapters 7 and 10). • Anticipating – the Internet provides an additional channel by which customers can access information and make purchases – evaluating this demand is key to governing resource allocation to e-marketing as explained in Chapters 2, 3 and 4. • Satisfying – a key success factor in e-marketing is achieving customer satisfaction through the electronic channel, which raises issues such as: is the site easy to use, does it perform adequately, what is the standard of associated customer service and how are physical products dispatched? These issues of customer relationship management are discussed further in Chapters 6 and 7.
E-business and e-commerce • You are attending an interview for a job in an E-commerce department. You are asked to:… • Define e-commerce • Explain the relationship between e-commerce and e-business?
Why is a digital strategy needed? • To set clear goals for digital channels • To align with business strategy (avoid ad-hoc approaches) • Create a specific online value proposition (OVP) • Specify communications tools to drive visitors • Integrate digital and traditional channels • Manage customer lifecycle (e.g. through email marketing)
Applications of digital marketing • An advertising medium • A direct-response medium • A platform for sales transactions • A lead-generation method • A distribution channel • A customer service mechanism • A relationship-building medium
1.6 Figure 1.6 North West Supplies Ltd site(www.northwestsupplies.co.uk) Source: Opportunity Wales
Figure 1.7 Summary and examples of transaction alternatives between businesses,consumers and governmental organisations
Different forms of web presence • 1. Transactional e-commerce site: • Examples – Amazon, Dell • 2. Services-oriented/relationship building • Accenture, British Gas • 3. Brand Building site • Tango, Guinness • 4. Portal or media site • Yahoo! Silicon.com • 5. Social network or media site • Note that these types overlap
Figure 1.9 Six categories of e-communications tools or media channels (Chaffey and Smith, 2008)
Figure 1.11 Summary of communication models for (a) traditional media,(b) new media
Figure 1.12 Summary of degree of individualisation for: (a) traditional media (same message), (b) new media (unique messages and more information exchange between customers
Figure 1.13 Channels requiring integration as part of integrated e-marketing strategy