The document discusses the internet micro-environment and various factors related to online marketing and customer behavior. It outlines competitive forces in the online marketplace, new channels for trading and customer location. It also discusses analyzing customer demand and conversion modeling to understand online buyer behavior and purchasing patterns. Different models are presented for classifying types of online users and their shopping behaviors.

1. The Internet micro-environment

2. “ We have only two sources of competitive advantage: the ability to learn more about our customers faster than the competition and the ability to turn that learning into action faster than the competition. ” -- Jack Welch, CEO of GE, outlining his competitive strategy for the next century Competitive Advantage...

3. Source: European Interactive Advertising Association Number of B2C online Purchases in Europe during January-June 2007

5. The Internet marketing environment

6. Micro Environment The Marketplace Customers Suppliers Competitors Intermediaries

7. The Marketplace Refers to the interactions between all the elements Competitive forces Value chain New channel Location of trading Commercial agreements New business &revenue models

8. Competitive forces

13. Value creation model

15. New channels

18. Location of trading Virtual marketplace Electronic marketplace What representation do company have Types of marketplace location

19. Different types of online trading location

20. Commercial arrangements Negotiated deal (www.ec21.com) brokerrred deal (www.screentrade.co) auction (www.ebay.com) Fixed price sale (www.dominos.com) barter (www.intagio.com) Pure markets (shares dealing online

21. Alternative perspectives on business models

22. Customers Online customers Demand analysis & Conversion modeling Online Buyer behavior

23. Demand analysis & conversion modeling Understanding the Potential and actual Volume of visitors To site The extent to which they convert to the outcomes

24. Assessing customer demand Need to assess: Access to Internet (ACCESS) Proportion of customers influenced by channel (CHOOSE) Proportion of customers who buy direct (BUY)

26. CONVERSION MODELS Conversion of potential visitor to actual visitor to repeat visitor Awareness efficiency Attractibility efficiency Contact efficiency Conversion efficiency Retention efficiency

27. A model of the Internet marketing conversion process

29. Online buyer behavior webographics Usage location Access drive Connection speed Usage type Usage level

30. Customer persona & scenario analysis Thumbnail description Of a type of person Developed for different personas Set of tasks a customer wants for desired outcome

31. Models of online behavior Lewis & Lewis (1997) E-Consultancy (2004) Hierarchy of Response Models

32. Lewis & Lewis (1997) Five different types of web users Directed information seekers: only go for information, not typically plans for buying Undirected information seekers: like to browse, mostly clicks on banner advertisements Directed Buyers: purchase specific products online, compares the features Bargain Hunters: find offers, known as compers Entertainment seekers: look for enjoyment and contests

33. E-Consultancy (2004) On the basis of UK retail sites Classification on the basis of online shopping behavior

34. Select supplier (enquire) ‘ Tracker’ Completing ‘ Hunter’ Researching ‘ Explorer’ Browsing Directed goal-oriented Undirected, exploratory Destination purchase (buy) Define requirements Assess supplier capabilities ‘ Inspire me’ ‘ What’s out there’

35. Hierarchy of Response Models

36. Competitors & suppliers

37. Intermediaries Are the firms that help a company to promote, sell and distribute its products/services. Provides info about the destination sites Can be independent or owned Also known as cybermediaries