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Chapter 1: Integrated Internet Marketing Communication (IIMC). Payam Hanafizadeh and Mehdi Behboudi http :// What is Marketing ?. Marketing is a process that has different meanings for different people :

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Chapter 1:

  • Integrated Internet Marketing Communication (IIMC)

Payam Hanafizadeh and Mehdi Behboudi


What is Marketing?

  • Marketing is a process that has different meanings for different people:
  • Some may consider marketing as merely a TOOL to improve sales, because their goal is to deplete product surplus.
  • For others, marketing may be viewed as nothing more than PLEASANT WORDS designed to attract audiences.
  • It may also be defined as a means to identifying Latent demands.

What is Marketing?

According to Kotler's definition, "Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and exchanging products and services of value freely with others" (Kotler, 2001a, p. 4).


Marketing and Development

According to Klein and Nason (2001), the term "development"can be defined as "expanded economic opportunities and improved outcomes in domestic and/or export markets, employment, standard of living, and social conditions commonly included under the concept of quality of life (access to and quality of health care, education, cultural opportunities and civic freedom and harmony)" (p. 263).


Marketing and Development

  • According to a general principle, development of new businesses may increasethegovernment's income due to the increase in the amount of taxes (Wood, 2004).


Marketing and Development

The main question then becomes: how can marketing, and especially online marketing, contribute to this goal?

Through identification of potential demands, marketing allows aproductorserviceto be presented concordant with asegment's demands.The fully customized product/service is delivered to the customer byimplementing strategiesdeveloped form the combination of4p(product, price, place, and promotion).


Latent Demand

A latent demand refers to a part of the market with a need not yet satisfied by a physical product or solution.

By recognizing these demands, marketers persuade customers to accept their products, and these vague desires which stem from a latent demand are converted to active demands.


Latent Demand

Thus, marketersdo not createNEEDS; they identify the NEEDS, give it a name and provide the customer with a satisfier.

Through converting latent demands to active ones, marketing plays a significant role in increasing the variety of national products and creating new competitive potential.


Product: A New Role

The term "product" is anyone or anything that contributes to world development.

This is somewhat in fight with Kotler and Armstrong (2001)’s definition: "a product is anything that can be offered to a market to satisfy a demand" (p. 7).


Product: A New Role

Through developing the concept of product, marketingpresents a new viewpoint for manufacturers.


Product: A New Role

The principle of aligning services/products with target customers' demands has incentivized companies to develop new production lines. Producersmay applyvarious methods todevelop a product.


Product: A New Role

However, marketing also incorporatesstrategiesfor companies that cannotaffordto develop a variety of productionlines. Theproper strategy for these brands is to increasethedemandfor their products' appeals.


Segmentation and the Online Environment

By introducing the concept of segmentation, marketing can identifyeach segment anddeterminetheright segment foreach company.The right segment of the market includes that part of the market to which a company should offer its services using all its capacities.


Segmentation and the Online Environment

Some elements of market segmentation include:


Geographic (region, density, and climate)

  • Demographic (age, family size, gender, income, occupation, education, race, social class)



  • Psychological (lifestyle and personality)

Behavioral (occasions, benefits, user status, usage rate, loyalty status, readiness stage, and attitude toward product) (Kotler, 2001, p.149).



Electronic Marketplace and Online Marketing

According to the definition of Kotler et al.(2005), a market is the set of actual and potential buyers of a product.These buyers share a particular need or want that can be satisfied through exchanges and relationships.


Electronic Marketplace and Online Marketing

Marketplaces have three tasks to fulfill:

  • Coordinating buyers and introduing them.
  • Providing the facilities required for exchanging data, goods, services and payments based on the common transactions.
  • Providing the legal frameworks and infrastructures required for individuals and organizations to attend the market more effectively (Zwass, 2003).


Electronic Marketplace and Online Marketing

Through foreign direct buying, online marketing provides domestic businesses with an economic development boost with benefits such as:

  • Changes in goods and elimination of physical product
  • Global access
  • Decreasing the size of the space for production
  • Online delivering and elimination of transportation costs
  • Improvement of buying power

Electronic Marketplace and Online Marketing

According to Yarom, Goldman, and Rosenschein (2003) and Turban et al. (2006), electronic intermediates eliminate the five following limitations that exist in virtual markets:

  • Information-seeking expenses
  • Security
  • Completion of incomplete information
  • Transaction risk
  • Customer's inability to find the right price

Multi-channel strategy

  • Multi-channel marketing is divided into three parts (Duffy, 2004):
  • Search term marketing
  • Shopping portals
  • Affiliated marketing


Multi-channel strategy

According to a study conducted by Teltzrow and Kobsa (2004), customers tend to rely on websites that have a number of actual brick-and-mortar stores.

Previous studies revealed that this behavior is due to three factors:

  • Information intermediate
  • Guarantee
  • reputation(Chellappa, 2000).


Multi-channel strategy

The customer will acquiesce to buy if it is confirmed that:

1.the website in question is well known. information intermediate is involved in the transaction that will be responsible if the customer's demand is not satisfied.

3. there is a guarantee for the transaction.


Competition in a Digital Economy

Businesses must select their competition strategy taking the four following strategies into account:

  • developing new business models
  • Offering differentiated products
  • Customer-oriented
  • Retrenchment


Online Negotiations

Previously, communication systems operated on analog information;however,most systems today operate within digital systems. Digital systems are based on bytesorstreamsof zeros and ones whioch allow the new medium to display image,dataandvideos.


Online Negotiations

  • A connection is required to allow these digital systems to exchange data. Therefore, Internet,intranet,extranetandnetworkshave been developed to redefine communication. Due to the progress made in this domain, "negotiation"as a buying approach has taken a new from.


Integrated Marketing Communication (IMC)

Integrated marketing communication is such a challenge that many studies and tools have been used to increase its efficiency, some of which include advertising, promotion, personal selling, public relations and direct marketing (Kotler, 2001, p. 272).


Integrated Marketing Communication (IMC)

The importance of IMC planning is emphasized by dynamic streams of various marketing areas including market segmentation, relationship marketing and direct marketing (Durking & Lawlor, 2001).


Integrated Internet Marketing Communication (IIMC)

  • The methods for integrated Internet marketing communication are as follows:


  • Online Direct Marketing


Integrated Internet Marketing Communication (IIMC)

Public relations

  • Personal selling
  • There are four other main issues in unified Internet marketing communications:
  • Sales promotion
  • Web-sites

Integrated Internet Marketing Communication (IIMC)

The Funnel Model of IIMC

Direct Online Marketing




Online Advertising

Personal Selling



Advertiser Website






Public Relations



The End Of Chapter 1