Balancing Customer and Competitor Orientations This CTR corresponds to Figure 9-6 on p. 242 and relates to the material on pp. 240-242. Competitor-Centered Company Production concept says that if products are widely available and low in cost they will sell..focus on mfg and distr Product concept focus on improving product Selling concept says we have to aggressive sell and promote or products to succeed. customer concept says if we stick close to our customers we will win Marketing concept says that the org must understand and satisfy the needs of target markets better than the competition. When there is a great deal of competition and customers have many choices..which is the most effective orientation for a company’s success? When we talk about “orientation” we are referring to culture, processes and other manifestations of values.
Managing the Salesforce This CTR corresponds to Figure 16-1 on p. 483 and relates to the material on pp. 482-495. Instructor’s Note: This CTR provides an overview of the salesforce management process with following CTR covering each key area in greater detail. Major Steps Salesforce Management Sales Force Management is the analysis, planning, implementation, and control of sales force activities. Major decisions include: Designing Strategy and Structure . Strategy requires decisions on salesforce structure, size, and compensation. Variations in this mixture are appropriate for differing industries, markets and sales objectives. Strategy and structure issues are covered in greater detail on a subsequent CTR. Recruiting and Selecting . Knowing in advance what characteristics will always produce good salespeople is very difficult. Selecting procedures should attempt to screen candidates for both ability and retention-related issues. Recruiting and selecting issues are covered in greater detail on a subsequent CTR. Training Salespeople . Issues in training center on skills such as order taking and order getting, seeing customers as unwilling to seeing them as people needing problem solutions. Training issues are covered in greater detail on a subsequent CTR. Compensating Salespeople . Compensation is made up of several elements -- a fixed amount, a variable amount, expenses, and fringe benefits. Compensation is covered in greater detail on a subsequent CTR. Supervising Salespeople . Supervision addresses problems in directing and coordinating salespeople's organization, time management, motivation, and customer relationships. Supervision issues are covered in greater detail on a subsequent CTR. Evaluating Salespeople . Evaluation requires both qualitative and quantitative measures of salesforce performance. Evaluation issues are covered in greater detail on a subsequent CTR.
Designing Sales Force Strategy and Structure This CTR relates to the discussion on pp. 483-484. Product Structure. Some companies organize separate sales forces for each product line. This is especially appropriate for complex products as it allows the salesperson to become expert on features and benefits. Customer Salesforce Structure. This structure organizes salespeople by customer levels, such as large, medium, and small companies or by different industries. Complex Structures. This approach combines variations of some or all of the previous structures. Very large companies that compete in many markets and have very different types of customers may find complex structures to be more adaptive and flexible to their needs. Designing Strategy Designing strategy requires decisions on salesforce structure: Territorial Salesforce Structure. Under this structure, each salesperson is assigned to an exclusive geographic region. This structure provides clear responsibility and encourages the building of relationships between the salesperson and the retailer.
Designing Strategy Designing strategy requires decisions on salesforce size, and other key issues:. Salesforce Size. Setting sales force size is an important consideration as the salesforce is an important, and expensive asset. The workload approach sets size according to the number of people needed to call on a specified number of customers during a specific time period. Other Issues . Sales management must make other decisions of strategic importance that affect sales force structure, including: Outside and Inside Sales Forces. Outside or field sales forces visit customers in person, inside sales forces make contact by telephone. The latter may include technical support people, sales assistants, and telemarketers. Team Selling. This approach services accounts with a team of specialists rather than a single salesperson. This is especially appropriate for large, complex accounts and products. Designing Sales Force Strategy and Structure This CTR relates to the discussion on pp. 484-486.
Steps in the Selling Process This CTR corresponds to Figure 16-3 on p. 496 and relates to the material on pp. 496-497. Steps in the Selling Process Prospecting and Qualifying. This step involves identifying qualified potential customers. Salespeople must always contact more people than will end up becoming a customer. Prospecting is the process of obtaining good sources of information on who might be interested in or need the product. Qualifying seeks to improve that list by separating more likely leads from poor ones. Preapproach . This step consists of doing the background research and preparation needed to understand the needs of the potential customer. Salespeople should set specific call objectives to accomplish when contacting the prospect. Approach . In this step consists of the first contact with the buyer and seeks to establish a good working relationship. The salesperson must be aware of the effect of his or her appearance, opening remarks, listening style, and closing comments. Presentation and Demonstration . In this stage the salesperson presents the product &quot;story&quot; to the buyer and demonstrates product benefits.
Steps in the Selling Process This CTR corresponds to Figure 16-3 on p. 496 and relates to the material on p. 497. Steps in the Selling Process Handling Objections . This requires seeking out and resolving concerns that would stop a customer from purchasing. Closing . This requires seeking out and resolving concerns that would stop a customer from purchasing. Follow-up . Follow-up is a necessary part of good selling to ensure satisfaction and repeat business.
What is Sales Promotion? This CTR relates to the material on pp. 463-464. Sales Promotion Sales Promotion . Sales promotion consists of short term incentives to encourage purchase or sales of a product or service. Areas of sales promotion include: Rapid Growth of Sales Promotion. Key factors contributing to the use of sales promotion include: Top management acceptance of sales promotion as an effective element in the marketing mix. Increased competition and decreased differentiation. Decreased advertising effectiveness has also put pressure on companies to shift more emphasis to sales promotion. Consumers have become more deal oriented and retailers are demanding more deals from manufacturers.
Consumer Promotion Tools This CTR relates to the discussion on pp. 465-466. Consumer Promotion Tools A number of tools are used by marketers to reach consumers directly, including: Samples . Samples offer consumers a trial amount of a product. Coupons. Coupons give buyers a savings on specified products. Rebates . Rebates consist of cash back after the purchase. Price Packs . Price packs offer reductions in price for special combinations of products or quantities of the product. Premiums . Premiums are goods offered free or at low cost as an incentive to buy the product. Advertising Specialties . Advertising specialties are useful items imprinted with the advertiser’s name or logo. Patronage Rewards. Patronage rewards are cash or prizes offered for the regular use of the product or service. Point-of-Purchase. Point-of-purchase promotions include displays and demonstrations at the retail level. Contests, Sweepstakes, and Games. These give consumers a chance to win something and draw attention to the product.
Trade Promotion Tools . A discount is a reduction in the price from the manufacturer to a member of the channel of distribution. An allowance is an authorized reduction in the amount paid to the manufacturer in return for performing one or more marketing channel functions. Trade - Promotion Tools This CTR relates to the discussion on pp. 466-467.
Business Promotion Tools . Conventions and trade shows provide a stage for showing products and meeting the salesforce. Sales contests provide the salesforce with incentives for performance over a given period. Business - Promotion Tools This CTR relates to the discussion on pp. 467-468.
Developing the Sales-Promotion Program This CTR relates to the material on p. 468. Developing the Program Incentives . All sales promotions must recognize that a certain minimum level of incentive is needed to have any effect. Conditions of Participation . These may be both legally mandated in some areas and/or linked to specific goals. Sweepstakes may restrict some participants or be linked to other behaviors such as prior purchases or bulk buys. How to inform participants must also be considered, for example, direct mailing of coupons or placing them on the package. Length of Time . Time considerations must be weighed between too short to have much effect or penetration of the market versus too long so as to lose any sense of immediacy to &quot;act now.&quot; Budget . Sales promotion budgeting suffers from the same organizational problems faced by marketers in other areas. Percentage of sales approaches do not see promotion as a cause of sales. Objective-based budgeting often fails to consider cost effectiveness. Pretesting and Implementation Sales promotion tools benefit from pretesting their effectiveness prior to implementation. Unfortunately, pretesting is seldom done. You may challenge students to come up with suggestions about how to do a &quot;mini pretest&quot; that managers might use within the time constraints of sales promotion deadlines. Implementation requires coordinating effective lead time and sell off time resources to manage the sales promotion effectively. Evaluating the Results A key part of evaluation is determining whether the promotion affected the total demand for the product or only its timing. Consumers may be surveyed or experiments conducted to ascertain the long-term impact of the promotion.
Characteristics of a Service This CTR relates to the material on pp. 466-468. Service Defined A service is any activity or benefit that one party can offer ot another that is essentially intangible and does not result in the ownership of anything. Characteristics of a Service Intangibility. Services are intangible. They have no prior sensory appeal before purchase. Buyers look for signs of service quality and sellers seek to provide surrogate measures of tangibility to reassure the buyer. Thus financial services are housed in solid buildings; life insurance may be sold by well groomed salespersons. Inseparability. Services are inseparable from their providers. The provider-client interaction is especially important in services and sometimes is the distinct feature of the service sought by the buyer. Variability. Services are highly variable. Especially in large service organizations, standardizing service across locations and many employees is very difficult. Yet reducing and controlling the amount of variability is a key part successful service business growth. Perishability. Services are perishable and cannot be inventoried or stocked for later sale. For personal services, matching demand to supply often involves innovations in distribution -- odd shop hours, weekends, even nights.
Strategies for Service Firms This CTR corresponds to Figure 18-3 on p. 470 and relates to the material on pp. 469-480. Marketing Strategies for Service Firms Internal Marketing. Internal marketing means that the service firm must effectively train and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction. Interactive Marketing . Interactive marketing means that perceived service quality depends heavily on the quality of the buyer-seller interaction. Customers judge both technical quality and functional quality (interpersonal interaction evaluation). Managing Differentiation. Provider differences become less important as consumers see services as essentially similar. Service firms can seek to add innovative features to differentiate. Service delivery can also be used to differentiate the offer based on differences in people, physical environment, and the service process. Managing Service Quality. Because of the characteristics of services, standardizing quality is particularly difficult. A key component of managing service quality is to identify customer expectations for service performance and linking the delivery of that quality to specific tasks whenever possible. Managing Productivity. Productivity can be managed by industrializing the service or designing more effective service offers.
Principles of Marketing Lecture Slides Dr. Robert Hurley Fordham College of Business
Distribution Channel Functions Contact Financing Information Risk Taking Promotion Matching Negotiation Physical Distribution These Functions Should be Assigned to the Channel Member Who Can Perform Them Most Efficiently and Effectively to Provide Satisfactory Assortments of Goods and Services to Target Customers.
Consumer Marketing Channels & Levels Direct Indirect Channel 1 Channel 2 Channel 3 Channel 4 Channel Level - Each Layer of Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer. M W J R C M W R C M R C M C
Channel Design Decisions Analyzing Consumer Service Needs Setting Channel Objectives & Constraints Exclusive Distribution Selective Distribution Intensive Distribution Identifying Major Alternatives Evaluating the Major Alternatives
Major Logistics Functions Inventory When to order How much to order Just-in-time Costs Minimize Costs of Attaining Logistics Objectives Warehousing Storage Distribution Order Processing Received Processed Shipped Logistics Functions Transportation Rail, Truck, Water, Pipeline, Air
What is Retailing? <ul><li>All the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use. </li></ul><ul><li>Retailers - businesses whose sales come primarily from retailing. </li></ul><ul><li>Retailers can be classified as: </li></ul><ul><ul><li>Store retailers such as Home Depot, Sears, Walmart. </li></ul></ul><ul><ul><li>Nonstore retailers such as the mail, telephone, and Internet. </li></ul></ul>
Retailer Marketing Decisions Retailer Marketing Mix Retailer Strategy Target Market Retail Store Positioning Product and Service Assortment Prices Promotion Place (Location)
Retailer’s Product Assortment and Services Decisions <ul><li>Product Assortment </li></ul><ul><li>Width and Depth of Assortment </li></ul><ul><li>Quality of Products </li></ul><ul><li>Product Differentiation Strategies </li></ul>Services Mix Key Tool of Nonprice Competition for Setting One Store Apart From Another. <ul><li>Store’s Atmosphere </li></ul><ul><li>Physical Layout </li></ul><ul><li>“ Feel” That Suits the Target Market </li></ul><ul><li>and Moves Customers to Buy </li></ul>
The Nature of Personal Selling <ul><li>Involves two-way, personal communication between salespeople and individual customers whether: </li></ul><ul><ul><li>face to face, </li></ul></ul><ul><ul><li>by telephone, </li></ul></ul><ul><ul><li>through video conferencing, </li></ul></ul><ul><ul><li>or by other means. </li></ul></ul><ul><li>The term salesperson covers a wide spectrum of positions from: </li></ul><ul><ul><li>Order Taking (department store salesperson) </li></ul></ul><ul><ul><li>Order Getting (someone engaged in creative selling) </li></ul></ul><ul><ul><li>Missionary Selling (building goodwill or educating buyers) </li></ul></ul>
Managing the Salesforce Designing Salesforce Strategy and Structure Recruiting and Selecting Salespeople Training Salespeople Compensating Salespeople Supervising Salespeople Evaluating Salespeople
Designing Sales Force Strategy and Structure Types of Sales Force Structure Complex Combination of Above Types of Sales Force Structures Territorial Exclusive Territory to Sell the Company’s Full Product Line Product Sales Force Sells Along Product Lines Customer Sales Force Sells Along Customer/ Industry Lines
How Will Sales and Sales Support People Work Together? Team Selling Designing Sales Force Strategy and Structure Sales Force Size May Use Workload Approach Who Will Be Involved in the Selling Effort? Outside Sales Force Inside Sales Force Other Sales Force Strategy and Structure Issues
How Salespeople Spend Their Time Administrative Tasks 16% Telephone Selling 25.1% Waiting/ Traveling 17.4% Service Calls 12.7% Face-to-Face Selling 28.8% Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling.
Step 1. Prospecting and Qualifying Step 2. Pre-approach Step 3. Approach Step 4. Presentation/ Demonstration Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Telling the Product “Story” to the Buyer, and Presenting Customer Benefits. Steps in the Selling Process
Step 5. Handling Objections Step 6. Closing Step 7. Follow-Up Seeking Out, Clarifying, and Overcoming Customer Objections to Buying. Asking the Customer for the Order. Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business. Steps in the Selling Process
Relationship Marketing <ul><li>Emphasizes maintaining profitable long-term relationships with customers by creating superior customer value and satisfaction. </li></ul><ul><li>Based on the idea that important accounts need focused and on-going attention. </li></ul>
<ul><li>Mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service. </li></ul><ul><li>Rapid growth in the industry has been achieved because: </li></ul><ul><ul><li>Product managers are facing more pressure to increase their current sales, </li></ul></ul><ul><ul><li>Companies face more competition, </li></ul></ul><ul><ul><li>Advertising efficiency has declined, </li></ul></ul><ul><ul><li>Consumers have become more deal oriented. </li></ul></ul>What is Sales Promotion ?
Consumer - Promotion Tools Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Consumer-Promotion Objectives Consumer-Promotion Tools Games Sweepstakes Contests Advertising Specialties Patronage Rewards Increase Short-Term Sales Build Long-Term Market Share Retailers to Carry New Items Sales Force Support for Current or New Products Consumer Relationship Building
Specialty Advertising Items Trade - Promotion Tools Contests Free Goods Buy-Back Guarantees Allowances Price-Offs Short-Term Incentives That are Directed to Retailers and Wholesalers. Trade-Promotion Objectives Trade-Promotion Tools Push Money Discounts Premiums Displays Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising “ Push” a Brand to Consumers
Business - Promotion Tools Short-Term Incentives That are Directed to Industrial Customers. Business-Promotion Objectives Business-Promotion Tools Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople Conventions Trade Shows Sales Contests
Developing the Sales Promotion Program Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program
Global Marketing Into the Twenty- First Century <ul><li>A Global Firm is one that, by operating in more than one country, gains marketing, production, R&D, and financial advantages that are not available to purely domestic competitors. </li></ul><ul><li>Global firms face several major problems: </li></ul><ul><ul><li>Variable exchange rates, </li></ul></ul><ul><ul><li>Unstable governments, </li></ul></ul><ul><ul><li>Protectionist tariffs and trade barriers, </li></ul></ul><ul><ul><li>Corruption. </li></ul></ul>
Global Marketing <ul><li>Moving from single country to dual country to regional to global increases complexity </li></ul><ul><li>Lots of opportunites to do dumb things: </li></ul><ul><ul><li>Clairol “mMist Stick” meant “Manure Stick” in Germany </li></ul></ul><ul><ul><li>Pepsi’s “Come alive with the Pepsi generation’ was translatd into “Pepsi brings your ancestor’s back from the grave” in China </li></ul></ul><ul><ul><li>The Coca-Cola name in China was read as “Ke-kou-ke-la” meaning “Bite the was tadpole” later changed to “Ko-kou-ko-le” meaning happiness in the mouth. </li></ul></ul><ul><ul><li>In Italy Schweppes Tonic water was translated into Schweppes Toilet water” </li></ul></ul>
Decisions in International Marketing Looking at the Global Marketing Environment Deciding Whether to Go International Deciding Which Markets to Enter Deciding How to Enter the Market Deciding on the Global Marketing Program Deciding on the Global Marketing Organization
Looking at the Global Marketing Environment The International Trade System The World Trade Organization and GATT Regional Free Trade Zones
Global Segmentation SES FORMATION (CLUSTERING OF FACTOR SCORES) High Sweetness Low Sweetness Low Information Search High Information Search C1 3 E2 H3 A3 C1 Segment 5 C2 C3 7 9 5 2 4 8 F1 A3 A3 A3 A3 F2 D3 B1 A2 E1 Segment 2 Segment 4 F2 G2 G1 Segment 1 A1 Clustering Step (step of clustering routine where the cluster is formed) Segment 3 6 1 B3 D1 H1 D2
Economic Environmental Factors Country’s Industrial Structure Subsistence Economies Raw Material Exporting Economies Industrializing Economies Industrial Economies Income Distribution
Political-Legal Environmental Factors Government Bureaucracy Attitudes Toward International Buying Monetary Regulations Political Stability
Cultural Environmental Factors How Customers Think About and Use Products Business Norms and Behavior Cultural Traditions, Preferences, and Behaviors
Deciding Whether to Go International <ul><li>Reasons companies might consider International expansion: </li></ul><ul><ul><li>Global competitors attacking the domestic market, </li></ul></ul><ul><ul><li>Foreign markets might offer higher profit opportunities, </li></ul></ul><ul><ul><li>Domestic markets might be shrinking, </li></ul></ul><ul><ul><li>Need an enlarged customer base to achieve economies of scale, </li></ul></ul><ul><ul><li>Reduce dependency on any one market, </li></ul></ul><ul><ul><li>Customers might be expanding abroad. </li></ul></ul><ul><li>Most companies do not act until some situation or event thrusts them into the international market. </li></ul>
Five International Product and Promotion Strategies Product No changes Changes P r o m o t I o n No changes Changes Straight Extension Communication Adaptation Product Adaptation Dual Adaptation Product Invention Develop New Product
Deciding Which Markets to Enter Marketer’s Checklist for Identifying 2. Volume of Foreign Sales Desired? 3. How Many Countries to Enter? 4. Types of Countries to Enter? 5. Evaluate Each Country Based On: a. Market Size b. Market Growth c. Cost of Doing Business d. Competitive Advantage e. Risk Level 1. Marketing Objectives and Policies? Market Potential
Deciding How to Enter the Market Direct Investment Joint Venturing Exporting Amount of Commitment, Risk, Control, and Profit Potential Greater Lesser
Deciding on the Global Marketing Organization Export Department International Division Global Organization Degree of Involvement in International Marketing Activities
Marketing Objectives that Affect Pricing Decisions Marketing Objectives Survival Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business. Current Profit Maximization Choose the Price that Produces the Maximum Current Profit, Cash Flow or ROI. Market Share Leadership Low as Possible Prices to Become the Market Share Leader. Product Quality Leadership High Prices to Cover Higher Performance Quality and R & D.
Price Elasticity of Demand Price Quantity Demanded per Period A. Inelastic Demand - Demand Hardly Changes With a Small Change in Price. P 2 P 1 Q 1 Q 2 Price Quantity Demanded per Period P’ 2 P’ 1 Q 1 Q 2 B. Elastic Demand - Demand Changes Greatly With a Small Change in Price.
Major Considerations in Setting Prices No Possible Profit at This Price Product Costs Consumer Perceptions of Value No Possible Demand at This Price Competitors’ Price and Other External & Internal Factors High Price Low Price Factory Existing Products Selling and Promoting Profits through Volume
Breakeven Analysis or Target Profit Pricing Total Revenue Total Cost Fixed Cost Target Profit ($2 million) Sales Volume in Units (thousands) Cost in Dollars (millions) Tries to Determine the Price at Which a Firm Will Break Even or Make a Target Profit 0 2 4 6 8 10 12 200 400 600 800 1,000
Characteristics of Service 1. Intangibility 2. Inseparability 3. Variability 4. Perishability Characteristics of Services and Their Marketing Implications
Service Situation Service Provider Profile Selection and Training Role Performance Customer Satisfaction and Market Share Strategy and Role Definition Service Strategy and Role Definition
Strategies for Service Firms Interactive Marketing Employees Company Customers Internal Marketing External Marketing
Benefits of Direct Marketing Benefits of Direct Marketing to Customers Benefits of Direct Marketing to Companies <ul><li>Direct Marketing Consists of Direct Communications with Carefully Targeted Individual Consumers to Obtain an Immediate Response. </li></ul>Fun, Convenient & Hassle-Free Saves Time Larger Merchandise Selection Comparison Shopping Mailing Lists for Almost Any Market Customized Offers Ongoing Relationships with Customers Timed to Achieve Higher Readership & Response Order Products for Themselves or Others Privacy
Trends Leading to the Growth of Direct Marketing Increasing Number of Market Niches with Distinct Preferences Higher Costs of Driving, Traffic and Parking Congestion Consumers Lack of Time Convenience of Ordering From Direct Marketers Growth of Customer Databases
Average Consumer Customer Anonymity Standard Product Mass Production Mass Distribution Mass Advertising Individual Customer Customer Profile Customized Market Offering Customized Production Individualized Distribution Individualized Message Mass Promotion Individualized Incentives Two-Way Messages Economies of Scope Share of Customer Profitable Customers Customer Retention One-Way Message Economies of Scale Share of Mind All Customers Customer Attraction Mass Marketing Vs. One-to-One Marketing Mass Marketing One-to-One Marketing
Forms of Direct Marketing Communication Catalog Marketing Kiosk Marketing Online Marketing Direct-Mail Marketing Direct-Response TV Marketing Telemarketing Face-to-Face Selling
Direct-Mail Marketing Catalog Marketing Telemarketing <ul><li>High target-market selectivity </li></ul><ul><li>Personalized </li></ul><ul><li>Flexible </li></ul><ul><li>Mail, Fax mail, E-mail, Voice Mail </li></ul>Forms of Direct Marketing Communication <ul><li>May sell full line of merchandise </li></ul><ul><li>Over 14 million copies of 8,500 different catalogs mailed annually </li></ul><ul><li>Most direct retailers also have catalogs on the Web </li></ul><ul><li>Outbound telemarketing to sell </li></ul><ul><li>Inbound telemarketing to receive orders </li></ul><ul><li>900 #’s to sell information, etc. </li></ul>
Direct-Response Television Marketing Kiosk Marketing <ul><li>Direct-Response Advertising such as Infomercials </li></ul><ul><li>Home Shopping Channels dedicated to selling goods and services (QVC & HSN) </li></ul>Forms of Direct Marketing Communication <ul><li>Information and ordering machines (kiosks) in stores, airports, and other locations. </li></ul><ul><li>Hallmark, Lee Jeans and Tower Records </li></ul>
Online Marketing and Electronic Commerce <ul><li>Online Marketing is conducted through interactive online computer systems, which link consumers with sellers electronically. </li></ul><ul><li>Two types of Online Marketing Channels: </li></ul><ul><ul><li>Commercial Online Services offer online information and marketing services to subscribers who pay a monthly fee. (i.e. AOL, CompuServe & Prodigy) </li></ul></ul><ul><ul><li>The Internet (the Net) is the vast global and public web of computer networks. </li></ul></ul><ul><li>The explosion of Internet usage has created a new world of electronic commerce , a term that refers to the buying and selling process supported by electronic means. </li></ul>
The Benefits of Online Marketing Convenient Private Abundance of Information Interactive Immediate For Consumers For Companies Reduces Costs Increases Efficiency Provides Flexibility Global Medium Consumer Relationship Building
Online Marketing Channels Creating an Electronic Storefront Buy Space on a Commercial Online Service Company Can Open It’s Own Corporate or Marketing Web Page Placing Advertisements Online Place Ads in Special Sections of Online Services Place Ads in Certain Internet Newsgroups Buy Online Ads That Pop Up While Consumers are Surfing, “Banners” Content Sponsorships Participating in Forums, Newsgroups & Web Communities Forums: Discussion Groups on Commercial Online Services, “Chat Rooms” Newsgroups: Internet Version of Forums Web Communities: Sites Where Members Exchange Views Online Using E-Mail and Webcasting Customers Send Questions, Suggestions & Complaints Via E-Mail Webcasting: Automatic Downloading of Information to PC’s
Promise and Challenge of Online Marketing Limited Consumer Exposure and Buying Skewed User Demographics and Psychographics Chaos and Clutter Ethical Concerns Security