This document provides an overview of online marketing and the opportunities presented by the internet. It discusses how the internet transforms traditional marketing practices by increasing efficiency and enabling new strategies. Key properties of the internet include new channels for selling, pricing and promoting products, as well as improved distribution, customer service, and market research capabilities. However, the most important impact is a shift towards greater customer power, as consumers now have more options, information, and control over their purchasing decisions and interactions with companies. Successful online marketing requires understanding customer needs and building trusting relationships through personalized communications and customized products/services.

1. Internet properties and
marketing implications
MARK 430
Advanced Online Marketing
Week 1

2. After this class you will
understand:
 What online or eMarketing is
 How it differs from traditional marketing
 What the properties of the Internet are that
offer opportunities (and challenges) to
marketers

3. Why study online marketing?
 Traditional marketing practices are being transformed
 Continuing strong growth in business-to-consumer
and business-to-business eCommerce
 New skills, knowledge and strategies in high demand
in the business world
 Marketers need to understand technology and
collaborate with IT colleagues

4. E-Business Markets
 There are three important markets that both sell to
and buy from each other:
 Businesses
 Consumers
 Governments

5. What is online marketing / e-
marketing?
 marketing is a process for creating and
delivering goods, services, and ideas to
customers
 e-Business components involved:
 e-commerce
 business intelligence
 supply chain management

6. What is online marketing / e-
marketing?
 marketing is based on exchanges that are
valuable to both the customer and the
company
 e-Business components involved:
 enterprise resource planning
 business intelligence
 customer relationship management

7. eMarketing objectives
 Recognizing customer needs and filling them
better than the competition
 Helping to make a company’s offerings
something that customers want to buy

8. Is eMarketing simply information
technology applied to traditional
marketing?
 E-marketing affects traditional marketing in two
ways:
 Increases efficiency in traditional marketing functions
 Use of Internet technology transforms many marketing
strategies.
Results: new business models that add customer value
and/or increase company profitability.

9. The impact of the Internet on
the marketing mix
 Product – new products, new delivery
mechanisms
 Price – dynamic pricing, comparison pricing,
bartering, bidding
 Place – direct distribution of digital products,
supply chain management, channel
integration
 Promotion – new communications media,
advertising efforts

10. The transformation of the marketing mix
 Shift away from a selling orientation toward a
customer-focused or customer-centric orientation
 The 4 Ps become the 4 Cs (Albert and Sanders
2002)
 Customer focused solution
 Cost (increase in value)
 Convenience
 Communication

11. Key issues for corporations:
 How to use information technology profitably
 How to understand what technology means for their
business strategies
 How marketing strategies can be enhanced by the
Internet, databases, wireless mobile devices, and
other technologies
 What’s next after the rapid growth of the Internet and
the dot-com bubble

12. Internet properties and marketing
implications

13. Internet properties and marketing
implications

14. Internet Properties and Marketing
Implications
 Internet means:
 new channels for selling and marketing
 new pricing and promotion options
 new forms of market research and new products
 improved distribution and customer service
 Most important is a shift toward customer power

15. What is driving customer power?
 More options
 More information
 Simpler transactions
 Network model versus broadcast model (or
why the Internet is not TV)
 buyer attention becomes a scarce commodity

16. Revenge of the Consumer
 The rebellion started with television channel surfing
using the remote control – now TiVo and pop-up killers.
 Now consumers have control via the mouse.
 Consumers are more demanding and more
sophisticated, and marketers will have to become better
at delivering customer value.
 Caveat emptor (let the buyer beware) becomes cave
emptorum (beware of the buyer)

17. The Cluetrain Manifesto: the end of
business as usual
 A powerful global conversation has begun.
Through the Internet, people are discovering
and inventing new ways to share relevant
knowledge with blinding speed.
As a direct result, markets are getting smarter
– and getting smarter faster than most
companies
The Cluetrain Manifesto. Levine, Locke, Searls, and Weinberger. Perseus Publishing. 2000

18. Consumer Needs
What do customers want in the information economy?
 Privacy: Customers want marketers to keep their data
confidential + don’t want to be bothered by sales calls at
home during dinner,
 Want marketers to ask permission before sending
commercial e-mail messages,
 Want e-commerce to provide convenience, self-service,
speed, good customer service, personal attention, and
value.

19. Consumer Needs
e-Marketing has the potential to meet all these needs:
 With mass customization individuals can contact
firms over the Internet and receive responses
tailored to their needs,
 Business can also customize and personalize
products and communications to strengthen long-
term relationships with customers.
E.g. Amazon.com presents personalized Web pages to
users

21. 4 steps to successful marketing
strategy
1. Understand customer needs
2. Formulate a strategy to fill those needs
3. Implement effectively and efficiently
4. Build trusting relationships with customers
(Urban pg.7)
Over the next 3 months we will examine and
understand various elements of this strategy