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Internet marketing c

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Internet marketing c

  1. 1. CHAPTER 14 WITH DUANE WEAVER Internet Marketing
  2. 2. Internet Uses Most common products researched online and bought offline:  Cars, computers, travel, electronics, books appliances, music, sporting goods and clothing. 25% of all business-business purchases are done online 54% of email users have responded to e-mail advertisements (2004) Internet retail is 2.5% of all retail sales
  3. 3. Impact of Internet on Marketing  The following 3 functions can cost up to 30% of COGS, expectations are that these costs can be reduced to 10-20% via e-commerce.  Sales  Marketing  Distribution Systems  Albeit, operating costs can be substantially lowered, the business must have:  Infrastructure (perhaps vested technology as a fixed cost or leased as an added operating expense (can void net gain))  Focus and design of company (bricks and mortar vs. virtual?)  Design of Website must be conducive to the IMC plan and established to the benefits of the target audience:  Excellent for psychographic segmentation  Multiple portals tailored to each segment (vs. one face for all)  Use flashy where needed (affective buyers) and avoid it where frivolous (cognitive buyers)  Integrate cookies and path traveled information with purchase habits  Requires constant modification to be on top of consumer needs  Must have multiple Trust Cues
  4. 4. Success with E-Commerce E-Commerce: selling of goods or services online. Three Incentives must exist for customers to buy online:  Financial: currently first time consumers require financial incentive (price reduction) in addition to trust cues.  Convenience: ability to order anytime from anywhere without having to visit a store. Delivered to your door.  Value Added: needed to induce long term repeat business such as:  Personalization (Lands End, Amazon.com)  Permission based marketing based on profiles  Reduced information search (find it all in once place – Insurance companies, E-bay)
  5. 5. Business-Business E-Commerce Works well for repeat purchasing of low cost items with strong brand recognition. Can help to speed time to market, as well as reduce inventory and transaction costs. Increase in online brokerage services for business to business…facilitating exchange of goods. (e.g.: PaperExchange.com) Websites can serve as alternate media to drive visits to bricks and mortar Nature of goods needs to be conducive to world-wide shipping when considering world wide web store front for international business Must be designed to handle such an enterprise (structure and function, marketing, aligned to meet expectations)
  6. 6. IMC and the Internet  In addition to using the Internet as part of the IMC plan for communications and marketing…  Fundamental to integrated the entire company from IT through to human resources, production and shipping.  The ability to meet the demands of online marketing is as important to survivability as having web presence.  Technology does not solve business problems…it expedites those that already exist! What once was broke and took attention once a week…will still be broken, however, it may take attention once an hour. Fix the business processes, align the companies resources, plan, build and then engage with a vengeance!  Brand Spiraling: using traditional media to drive customers to the online website to enhance brand recognition.  Halo Effect: offline brand recognition induces online willingness to try new products and services from the same brand on the net.
  7. 7. Discussion Questions Please get into groups of 3-5 and discuss the following three questions, be prepared to share some of your answers with the class:  P. 459-460 (blue book) and P. 431 (white book) Questions:  1. (Only in blue book): What age group is most likely to use the Internet? Which is the least? Does this have implications for IMC programs (explain)?  5. (Both books): Name and describe the three main incentives used to attract shoppers to e-commerce Web sites.  6.(Both books): What is cyberbait? How must it be used over time to maintain it as an effective marketing tactic?
  8. 8. Thank You http://6f715ns710wdm2395kfhqm74x

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