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Chapter 11

Marketing On The Internet

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OBJECTIVES

• Pros & Cons of Online Shopping

• Internet Marketing Techniques

• E-Cycle of Internet Marketing

• Marketing Your Presence

• Attracting Customers to Site

• Tracking Customers

Marketing on Internet: Objectives

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ONLINE SHOPPING

Pros• Sorting through

choices• Vast product selection• Quick comparison of

products

Cons• Experimental

information might be necessary– E.g. perfumes, clothes

• Delivery of products might be cumbersome – E.g. lumber

Marketing on Internet: Pros & Cons of Online Shopping

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REASONS FOR GOING ONLINE

• Establish presence

• Serve your customers

• Heighten public awareness

• Share time-sensitive information

• Sell goods

• Answer important questions

Marketing on Internet: Pros & Cons of Online Shopping

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REASONS FOR GOING ONLINE (Cont’d)

• Stay in touch with field personnel

• Market at international level

• Serve at local market

• Market specialized products

• Reach the youth market

Marketing on Internet: Pros & Cons of Online Shopping

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INTERNET MARKETING TECHNIQUES

Marketing on Internet: Internet Marketing Techniques

PASSIVE AGGRESSIVE

Pull to Push Continuum

Providers of Information

Site registered with many search engines

Specialized services to users requesting information

Specialized e-mail to users requesting periodic information

Offline Advertising

Banner Advertising

Targeted E-mails to Past Customers

Spam Mail

Chain Mail Advertising

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FORMULA

SNI = Consideration Gap X Site-to-Product Affinity

Consideration Gap

• = Price/Purchase Frequency

• Intensity of pre-purchase deliberation

Site-to-Product Affinity

• Sales viability + Research intensity + Configurability + Service level

• Ability to deliver online experience correlated to the product/service

Marketing on Internet: Internet Marketing Techniques

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FORMULA (Cont’d)Whereby• Price = How expensive is the product compared with other

household purchase?• Purchase frequency = How often does the household purchase the

product?• Service level = How much customer service does the product need

online?• Research intensity = How research-intensive is the purchase

decision?• Configurability = How customizable is the product?• Sale viability = How viable are online sales of the product?

Marketing on Internet: Internet Marketing Techniques

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E-CYCLE OF INTERNET MARKETING

• Planning

• Product

• Pricing

• Place

• Promotion

Marketing on Internet: E-Cycle of Internet Marketing

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BUSINESS PLANNING

• Business Plan– Written document identifying your business goals &

how you will achieve them

– Elements• Mission / Vision

• Product

• Competition

• Target audience

• Marketing

• Sales plan

• Operation

• Technology

Marketing on Internet: E-Cycle of Internet Marketing

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PRODUCT & PRICING

• Product– Emphasis on viability, quality & integrity– Physical vs. Service

• Pricing– Frequent purchase plans– On-line auctions

Marketing on Internet: E-Cycle of Internet Marketing

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PLACE

• Exchange of information between businesses and delivery companies

• Ensure prompt delivery of physical goods to customers

• Related to fulfillment• Internet

– A delivery channel for digital products

– Cheap, fast, effective

– Possibility of tapping / theft of digital data

Marketing on Internet: E-Cycle of Internet Marketing

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PROMOTION

• Get prospective visitors’ attention

• Create interest in a product

• Build a desire in the product

• Banners– Internet ads– Cheap & fit traditional ad-agency formula

Marketing on Internet: E-Cycle of Internet Marketing

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PERSONALIZATION

• Combination of Promotion & Product

• For customers to receive personalized information

• ‘Artificial Intelligence’ incorporated into Internet Marketing

Marketing on Internet: E-Cycle of Internet Marketing

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MARKETING IMPLICATIONS

• Content• Dynamic & Attractive Sites• Brands• Get to the Point• Promotion• Online Events• Free Giveaways• Consistency

Marketing on Internet: E-Cycle of Internet Marketing

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PROMOTING YOUR SITE ON YOUR SITE

• Begins with domain name

• Encourage repeat site visits

• Update site content

• Share with your visitors any new awards

• Use promotional giveaways, contests, etc.

Marketing on Internet: Marketing Your Presence

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PROMOTING YOUR SITE ON THE WEB

• Search engines & directories

• Stand out from other sites

• Brainstorm keywords for robot search

• Ensure the site design is flawless before submitting to search engines

Marketing on Internet: Marketing Your Presence

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PROMOTING YOUR SITE ON THE INTERNET

• Use e-mails to contact registered customers

• Use news groups and mailing lists

Marketing on Internet: Marketing Your Presence

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ATTRACTING CUSTOMERS TO SITE

• Keeping site content current• Offer free information or products• Offer a free service as a way to entice customers

online for B2B• Implement cross-selling strategy• Ensure easy and quick navigation• Introduce event marketing• Enlist affiliates

Marketing on Internet: Attracting Customers to Site

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ATTRACTING CUSTOMERS TO SITE (Cont’d)

• Cultural Differences– How to market to local customers

• Predicting Buying Behavior– Save time– Young, educated, and wealthier population

Marketing on Internet: Attracting Customers to Site

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PERSONALIZATION

• Identification

• Determining buyers’ buying pattern

• Marketing attractive products

• How to add personalization– Keywords– Collaborative filtering– Rule-based

Marketing on Internet: Attracting Customers to Site

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TRACKING CUSTOMERS

• Gathering web data– Log files– Forms– Cookies

• Persistent vs. Session

• Clickstream data analysis• Role of shop bot

– Searches sites to compare prices

Marketing on Internet: Tracking Customers

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Chapter 11

Marketing On The Internet