Chapter 1 An introduction to internet marketing

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Chapter 1An introduction to internet 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 on business

• 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 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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easyJet web site (www.easyjet.com)
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An extract from the Castrol.com web site,
reproduced by permission of Castrol Limited. Any
unauthorised reproduction is strictly prohibited
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Variation in UK media consumption in hours (bars)
compared to percentage media expenditure
(diamonds) Source Compiled from EIAA (2005) and
IAB (2005)
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(No Transcript)
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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
• Give examples of how the Internet (web and
  e-mail) achieves these?

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• Customer-centric digital marketing involves
• Applying
• Digital technologies which form online channels
  (Web, e-mail, databases, mobile, iDTV)
• to
• Contribute to marketing activities aimed at
  achieving profitable acquisition and retention of
  customers (within a multi-channel buying process
  and customer lifecycle)
• through
• Improving customer knowledge (of their profiles,
  behaviour, value and loyalty drivers), then
  delivering integrated targeted communications
  and online services that match their individual
  needs.

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E-business and e-commerce

• Define e-commerce
• What is the relationship between e-commerce and
  e-business?

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E-business and e-commerce
The distinction between buy-side and sell-side
e-commerce
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Summary and examples of transaction alternatives
between businesses, consumers and governmental
organisations
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Dubit C2C site for a youth audience
(www.dubit.co.uk)
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Benefits of online marketing
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Types of web presence

• 1. Transactional e-commerce site
• Examples Amazon, Dell
• 2. Services-oriented/relationship building
• Accenture, British Gas
• 3. Brand Building site
• Tango, Guinness
• 4. Portal or media site
• Yahoo!, Silicon.com
• Note that these types overlap

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North West Supplies Ltd site (www.northwestsupplie
s.co.uk) Source Opportunity Wales
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A generic internet marketing strategy development
process
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Interactivity and intelligence
Summary of communication models for (a)
traditional media,(b) new media
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Individualisation
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
Channel requiring integration as part of
integrated e-marketing strategy
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Mixed-mode buying
The role of mixed-mode buying in Internet
marketing
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Technology addressing

• Common gTLDs are
• .com represents an international or American
  company such as http//www.travelagency.com
• .co.uk represents a company based in the UK such
  as http//www.thomascook.co.uk/.
• .ac.uk a UK based University (e.g.
  http//www.derby.ac.uk)
• .org.uk or .org are not for profit organisations
  (e.g. www.greenpeace.org)
• .net a network provider such as
  www.freeserve.net.

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How it works client/server
Information exchange between a web browser and a
web server
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How it works - HTML
Home page index.html for The B2B Company in a web
browser showing HTML source in text editor
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Internet, intranet, extranet
The relationship between access to intranets,
extranets and the Internet