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Internet Marketing Concepts Week 2 Objectives The new communication medium The Internet and the marketing mix Key elements of effective web site designs Internet marketing versus conventional marketing The Internet as a New Communication Medium

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objectives
Objectives
  • The new communication medium
  • The Internet and the marketing mix
  • Key elements of effective web site designs
  • Internet marketing versus conventional marketing
the internet as a new communication medium
The Internet as a New Communication Medium
  • Digital, interactive, and a greater depth of information can be published
  • Demographics may be different
  • Culture of purchasers may be different
  • Markets may be different
the digital medium of the internet
The Digital Medium of the Internet
  • Predominantly a pull medium
  • Enables interaction
  • Potential for one-to-one or many-to-many communication
  • The medium changes the nature of advertising
  • Changes to the distribution channel and marketplace enabled by the digital media
communication using the internet
Communication Using the Internet

C5

O

C1

C4

O

M

Content

M

Content

Content

C2

Internet Medium

M

M

M

M

Content

O

O

C3

O

the communication model
The Communication Model

N O I S E

Receiver

(web browser)

Message decoding

Source

(web site)

Message encoding

Site content or e-mail

Feedback (transaction log file)

cultural difference
Cultural Difference
  • Uses of the Internet in the UK (1998) includes:
    • Sending email (72 %)
    • Research (63%)
    • Education (58%)
    • Seeking information on products and services (53%)
    • Hobbies and interests (53%)
    • Games playing (32%)
    • Planning holidays (24%)

Web reference: NOP Research Group (www.nopres.co.uk)

in europe and the usa
In Europe and the USA
  • Average age of user is 35.7 years old
  • 38.5 % female and 61.5% male (22%, 72% Europe)
  • 65% access the Web from home (29% Europe)
  • Average household income $53,000

Web reference: KPMG (www.kpmg.co.uk), GVU (www.gvu.gatech.edu/user_surveys)

cultural difference9
Cultural Difference
  • Techno_lusters – focused in the culture and technology
  • Academic buffs – originally on of the main types of users
  • Techno-boffins – similar to the techno-lusters, but make more directed use of the technology for business
  • Get aheads – use the Internet as a lifestyle accessory, use email and Internet for product selection
  • Hobbyists – people with specialist interests who use the Internet for purchase selection (golfers…)
  • Knowledge traders – business oriented users who turn to the Internet for news services and information on best business practice
  • Business bods – general business users in management roles
  • Home users – members or families looking for education or purchases
internet and marketing mix
Internet and Marketing Mix

Using the Internet to vary the marketing mix

Product

  • Quality
  • Image
  • Branding
  • Features
  • Variants
  • Mix
  • Support
  • Customer service
  • Use occasion
  • Availability
  • Warranties
  • Price
  • Positioning
  • List
  • Discounts
  • Credit
  • Payment methods
  • Free or value-added elements
  • Promotion
  • Marketing communications
  • Personal promotion
  • Sales promotion
  • PR
  • Branding
  • Direct marketing
  • Place
  • Trade channels
  • Sales support
  • Channel number
  • Segmented channels
  • People
  • Individuals on marketing activities
  • Individuals on customer contact
  • Recruitment
  • Culture/image
  • Training and skills
  • Remunera-tion
  • Processes
  • Customer focus
  • Business-led
  • IT-supported
  • Design features
  • Research and development
the buying process on the internet
The buying Process on the Internet

Stages in

buying process

Internet marketing

techniques

Communications

objectives

Generate awareness

Banner advertising,

PR, links

Web site content

(Plus search support)

Search engines,

Intermediaries

Web site content,

Intermediaries

Web site content

Personalized web

Site content and

interaction

1. Unaware

2. Aware of product need, develop specification

Position Features,

benefits and brands

Lead generation

(from range of

customers)

3. Suppliers search

4. Evaluate and select

Assist purchase

decision

5. Purchase

Facilitate purchase

6. Post-purchase evaluation and feedback

Support use and

retain business

key elements of effective web site design
Key Elements of Effective Web Site Design
  • Capture
  • Content
  • Community
  • Commerce
  • Customer orientation
  • Credibility
alternative factors
Alternative Factors
  • Attract users
  • Engage users’ interest and participation
  • Retain users and ensure that they return to the site
  • Learn about customer preference
  • Relate back to customers with customized interactions
internet marketing vs conventional marketing
Internet Marketing vs Conventional Marketing
  • It is a many-to-many medium
  • Consumers can interact with the medium
  • Consumers can provide commercially oriented content to the medium