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• 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 managemen[r]

Internet Marketing Concepts

Week 2

• 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

• 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

• 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

Internet Medium

C4

C2

O O

C3

O

Con

tent

M C on

Co nte

nt

M

Conte nt

M M

M

The Communication Model

N O I S E

Source

(web site)

Message encoding

Receiver (web browser) Message decoding Site content or e-mail

Feedback (transaction log file)

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

• 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 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

Product

• Quality

• Image

• Branding

• Features

• Variants

• Support

• Customer

service

• Use

occasion

• Availability

• Warranties

Using the Internet to vary the marketing mix

Price

• Positioning

• List

• Discounts

• Credit

• Payment methods

• Free or value-added elements

Promotion

• Marketing communica tions

• Personal promotion

• Sales promotion

• Branding

• Direct marketing

Processes

• Customer focus

• Business-led

• IT-supported

• Design features

• Research and developme nt

People

• Individuals

on marketing activities

• Individuals

on customer contact

• Recruitment

• Culture/

image

• Training and skills

• Remunera-tion

Place

• Trade channels

• Sales support

• Channel number

• Segmented channels

The buying Process on the Internet

Stages in

buying process Communicationsobjectives

Internet marketing techniques

1 Unaware

2 Aware of

product need,

develop

specification

3 Suppliers

search

4 Evaluate and

select

5 Purchase

6 Post-purchase

Generate awareness

Lead generation (from range of customers) Assist purchase decision Facilitate purchase

Position Features, benefits and brands

Banner advertising,

PR, links

Web site content (Plus search support)

Search engines, Intermediaries

Web site content, Intermediaries Web site content

Key Elements of Effective Web Site

Design

• Capture

• Content

• Community

• Commerce

• Customer orientation

• Credibility

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

• It is a many-to-many medium

• Consumers can interact with the medium

• Consumers can provide commercially oriented content to the medium