CHAPTER 1 The Journey Begins

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CHAPTER 1The Journey Begins

• From e-Business
• to
• e-Commerce
• To
• e-Marketing

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Learning objectives

• Evaluate the relevance of the Internet to the
  modern marketing concept
• distinguish between Internet marketing,
  e-marketing, e-commerce and e-business
• identify the key differences between Internet
  marketing and traditional marketing
• assess how the Internet can be used in different
  marketing functions

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Questions for marketers

• How significant is the Internet as a marketing
  tool?
• How does Internet marketing relate to
  e-marketing, e-commerce and e-business?
• What are the key benefits of Internet marketing?
• What differences does the Internet introduce in
  relation to existing marketing communications
  models?

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The impact of the Internet

• Andy Grove, Chairman of Intel, one of the early
  adopters of e-commerce, has made a meteorological
  analogy with the Internet. He says
• Is the Internet a typhoon force, a ten times
  force, or is it a bit of wind? Or is it a force
  that fundamentally alters our business? (Grove,
  1996)

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The impact of the Internet
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The Internets impact on you?

• How many of you have purchased something on the
  Internet in the last 6 months?
• How many times have you used the Internet as an
  information source, before buying offline?

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Demand Internet access
Figure Global variation in number of PCs per
hundred population and percent Internet access in
2000 Source ITU (www.itu.int)
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How does the Internet contribute to marketing?

• The definition of marketing by the Chartered
  Institute of Marketing (http//www.cim.co.uk/)
  is
• Marketing is the management process responsible
  for identifying, anticipating and satisfying
  customer requirements profitability

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What is e-marketing?

• E-marketing is
• Applying
• Internet and other digital technology
• (web, e-mail, wireless, iTV, databases)
• to
• acquire and retain customers
• (through a multi-channel buying process
• and customer lifecycle)
• by
• Improving customer knowledge, targeting,
• service delivery and satisfaction

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E-business and e-commerce
Figure The distinction between buy-side and
sell-side e-commerce
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Relationship between e-commerce and e-business
Figure Three alternative definitions of the
relationship between e-commerce and e-business
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Internet marketing contexts
Figure Summary of transaction alternatives
between businesses and consumers
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Internet applications
Figure Market and product strategic grid
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How it works - components
Figure Infrastructure components of the Internet
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Internet, intranet and extranet
Figure 1.12 The relationship between access to
intranets, extranets and the Internet
SOURCE Chaffey (2003) Internet Marketing, 2nd
edition, Pearson Education Limited
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Interactivity and intelligence
Figure Summary of communication models for (a)
traditional media, (b) new media
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Individualization
Figure Summary of degree of individualisation
for (a) traditional media (same message), (b)
new media (unique messages and more information
exchange between customers)
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Integration
Figure Channel requiring integration as part of
integrated e-marketing strategy
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Mixed-mode buying

• Figure The role of mixed-mode buying in Internet
  marketing

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Conversion marketing
Figure A model of the Internet marketing
conversion process
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Conversion marketing - example
Figure An example of the conversion process