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Fundamentals of Internet Marketing Back to Table of Contents.

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Presentation on theme: "Fundamentals of Internet Marketing Back to Table of Contents."— Presentation transcript:

1 Fundamentals of Internet Marketing Back to Table of Contents

2 Fundamentals of Internet Marketing Marketing Basics Market Research 2 Fundamentals of Internet Marketing Section 12-1 Section 12-2 Chapter 12

3 Fundamentals of Internet Marketing Section 12-1 Why It’s Important Relationships between buyers and sellers are more personalized and dynamic than ever before. To reap the benefits—and avoid the risks—of these advancements, both buyers and sellers must recognize marketing fundamentals. 3Section 12-1

4 Fundamentals of Internet Marketing Section 12-1 Key Terms marketing marketing mix market segments cross selling promotions virtual marketing personalization cookies marketing permission marketing 4Section 12-1

5 Fundamentals of Internet Marketing Marketing Marketing encompasses countless business decisions, from Web-site designs to delivery options. marketing the process of planning and carrying out the production, distribution, promotion, and pricing of products and services 5Section 12-1

6 Fundamentals of Internet Marketing The Marketing Mix To attract new customers and keep old ones coming back, you need to create a customer-focused marketing mix. marketing mix consists of four critical elements, collectively known as the four Ps: product, price, place, and promotion 6Section 12-1

7 The Marketing Mix 7 The Four Ps Section 12-1 P P P P Product Price Place Promotion

8 Fundamentals of Internet Marketing The Marketing Mix A product is any item manufactured for sale. Services are not material goods, but rather work done in exchange for payment. 8Section 12-1

9 Fundamentals of Internet Marketing The Marketing Mix In marketing a product, you need to consider the level of product quality you intend to provide. Decisions regarding product quality and service levels will depend largely on your target market. 9Section 12-1

10 Fundamentals of Internet Marketing The Marketing Mix Some target markets include two or more market segments. market segments distinct groups of people who share certain characteristics 10Section 12-1

11 The Marketing Mix 11 Market Segment Identification Section 12-1 DemographicsPsychographicsGeographicsProduct benefits group people by statistics such as income, age, or gender define people by their lifestyle preferences categorize people by their location identify people according to the satisfaction they get from products

12 Fundamentals of Internet Marketing The Marketing Mix Your product line is a group of related products that complement one another. Your product mix is the full set of products offered for sale, including all product lines. 12Section 12-1

13 Fundamentals of Internet Marketing The Marketing Mix A good product mix offers opportunities for cross selling. cross selling generating another sale by offering related items 13Section 12-1

14 Fundamentals of Internet Marketing The Marketing Mix Price is the amount of money a business receives in exchange for a product or service. When setting prices, consider costs, profits, your target market, and image. 14Section 12-1

15 Fundamentals of Internet Marketing The Marketing Mix When it comes to business, place means where customers shop and how the product or service will be delivered. 15Section 12-1

16 Fundamentals of Internet Marketing The Marketing Mix You must inspire potential customers to visit your site and purchase your products or services through promotions. promotions advertisements intended to inform potential customers about products or services 16Section 12-1

17 Fundamentals of Internet Marketing The Marketing Mix You can enhance your word-of-mouth promotion with virtual marketing. virtual marketing a cost-effective strategy that uses customers to help promote a business 17Section 12-1

18 Fundamentals of Internet Marketing The Marketing Mix To the four Ps of the marketing mix, a fifth could be added: personalization. personalization refers to establishing one-to-one relationships with your customers, for example greeting by name or offering book and movie recommendations based on previous visits 18Section 12-1

19 Fundamentals of Internet Marketing The Marketing Mix Many online businesses use cookies to personalize their marketing. cookies small text files written directly onto visitors’ hard drives, containing information such as names, shopping- cart contents, user preferences, or unique identification codes; using cookies, businesses can collect data and analyze the behavioral patterns of their customers to market personally to them 19Section 12-1

20 Fundamentals of Internet Marketing The Marketing Mix marketing is another way in which you can establish personal relationships with your customers. marketing inexpensive advertising method with high response rate that allows a business to establish personal relationships with customers, send customized messages, tell customers about new products and sales, or remind them to order gifts for holidays or special events in their profiles 20Section 12-1

21 Fundamentals of Internet Marketing The Marketing Mix Recently, many companies have started using a new marketing strategy called permission marketing. permission marketing when a potential customer has consented to receive marketing messages and will only receive advertisements about products and services they have requested 21Section 12-1

22 Fundamentals of Internet Marketing Section 12-1 Review What is marketing, and how can it impact an online business? How can a good product mix create successful marketing opportunities in e-commerce? Of the four Ps of the marketing mix, how can the component place be best described? What is permission marketing? Section

23 Fundamentals of Internet Marketing Section 12-2 Why It’s Important To develop a strong marketing mix, a company must understand its customers’ needs, wants, and buying patterns. Researching the market enables businesses to cater more accurately to their customers. Section

24 Fundamentals of Internet Marketing Section 12-2 Key Terms market research marketing research clickstream data metrics Section

25 Fundamentals of Internet Marketing Identifying Market Opportunities Traditional bricks-and-mortar retailers have always collected and analyzed market data. In the world of e-commerce, companies have their own ways of collecting market data. 25Section 12-2

26 Fundamentals of Internet Marketing Market Research Market research can help a business to recognize opportunities. 26Section 12-2 market research encompasses all of a business’s efforts to collect data regarding the economic climate, competitor prices or strategies, governmental regulations and policies, consumer demographics, and emerging technologies; distinct from marketing research

27 Fundamentals of Internet Marketing Primary Secondary Market Research There are two main types of market research. 27Section 12-2 Primary research is data gathered directly from people. Secondary research is a summary of existing data gathered from nonhuman sources.

28 Fundamentals of Internet Marketing Market Research Marketing research is conducted by all types of businesses. 28Section 12-2 marketing research focuses specifically on consumer behaviors and the reasons behind buying habits; it collects information about consumers, especially a company’s target market, and analyzes demographics, buying habits, product preferences, and concerns about technology; distinct from market research

29 Fundamentals of Internet Marketing Market Research Clickstream data, or the information recorded in most server logs, is another rich source of information. 29Section 12-2 clickstream data a Web site visitor’s electronic footprints, recorded in most server logs, including their unique IPs, page views, downloaded images, and URLs

30 Fundamentals of Internet Marketing Market Research Metrics can be used to improve site navigation, create better privacy policies, and determine which pages generate the most interest. 30Section 12-2 metrics patterns found in clickstream and other data

31 Fundamentals of Internet Marketing Market Research Internet and traditional shoppers want similar things from their shopping experience: 31Section 12-2 easy navigation quick and simple checkout privacy and security fair prices quality products

32 Fundamentals of Internet Marketing Section 12-2 Review How are Internet and traditional shoppers similar? Why will a business conduct research into its distribution operations? What is the difference between primary and secondary research? Provide examples of each Section 12-2

33 Fundamentals of Internet Marketing 33

34 Fundamentals of Internet Marketing End of Back to Table of Contents


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