Chapter 10 Marketing on the Internet

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Chapter 10Marketing on the Internet
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OBJECTIVES

• Pros and Cons of Online Shopping
• Internet Marketing Techniques
• E-Cycle of Internet Marketing
• Marketing Your Presence
• Attracting Customers to Site
• Tracking Customers

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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

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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

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REASONS FOR GOING ONLINE (Contd)

• Stay in touch with field personnel
• Market at international level
• Serve at local market
• Market specialized products
• Reach the youth market

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INTERNET MARKETING TECHNIQUES
Pull to Push Continuum
PASSIVE
AGGRESSIVE
Providers of Information
Site registered with many search
engines Specialized services to users requesting
information Specialized email 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

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FORMULA (Contd)

• Whereby
• Price How expensive 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?

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E-CYCLE OF INTERNET MARKETING

• Planning
• Product
• Pricing
• Place
• Promotion

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BUSINESS PLANNING

• Business Plan
• Written document identifying your business goals
  and how you will achieve them
• Elements
• Mission / Vision
• Product
• Competition
• Target audience
• Marketing
• Sales plan
• Operation
• Technology

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PRODUCT PRICING

• Product
• Emphasize on viability, quality and integrity
• Physical vs. Service
• Pricing
• Frequent purchase plans
• Online auctions

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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

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PROMOTION

• Get prospective visitors attention
• Create interests in a product
• Build a desire in the product
• Banners
• Internet ads
• Cheap and fit traditional ad-agency formula

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PERSONALIZATION

• Combination of Promotion and Product
• For customers to receive personalized information
• Artificial Intelligence incorporated into
  Internet Marketing

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MARKETING IMPLICATIONS

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

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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.

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PROMOTING YOUR SITE ON THE WEB

• Search engines and directories
• Stand out from other sites
• Brainstorm keywords for robot search
• Ensure the site design is flawless before
  submitting to search engines

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PROMOTING YOUR SITE ON THE INTERNET

• Use e-mails to contact registered customers
• Use news groups and mailing lists

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ATTRACTING CUSTOMERS TO SITE

• Keeping site content current
• Offering free information or products
• Offer a free service as a way to entice customers
  online for B2B
• Implementing cross-selling strategy
• Ensuring easy and quick navigation
• Introducing event marketing
• Enlisting affiliates

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ATTRACTING CUSTOMERS TO SITE (Contd)

• Cultural Differences
• How to market to local customers
• Predicting Buying Behavior
• Save time
• Young, educated, and wealthier population

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PERSONALIZATION

• Identification
• Determining buyers buying pattern
• Marketing attractive products
• How to add personalization
• Keywords
• Collaborative filtering
• Rule-based

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TRACKING CUSTOMERS

• Gathering Web data
• Log files
• Forms
• Cookies
• Persistent vs. Session
• Clickstream data analysis
• Role of shopbot
• Searches sites to compare prices

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Chapter 10Marketing on the Internet