OHT 1.1 CHAPTER 1 The Journey Begins… From e-Business to e-Commerce To e-Marketing

OHT 1.2 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

OHT 1.3 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?

OHT 1.4 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)‏

OHT 1.5 The impact of the Internet £1.8bn<1%B2C TravelThomas Cook £18.4bn1.4%B2C GroceryTesco £76m3.4%B2C FoodDomino’s Pizza £761m Group7%B2B ElectronicsElectrocomponents £100m10%B2C BooksBook Club Associates $1.3bn11%B2C ClothingLands End Clothing $25bn48%B2B, B2C Computers Dell £264m85%B2C Air travelEasyjet $19bn90%B2B Networking hardware Cisco Overall turnover Online contribution SectorOrganisation

OHT 1.6 The Internet’s 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?

OHT 1.7 Demand – Internet access Figure: Global variation in number of PCs per hundred population and percent Internet access in 2000 Source: ITU (

OHT 1.8 How does the Internet contribute to marketing? The definition of marketing by the Chartered Institute of Marketing ( is: Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability

OHT 1.9 What is e-marketing? E-marketing is: Applying… Internet and other digital technology… (web, , 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

OHT 1.10 E-business and e-commerce Figure: The distinction between buy-side and sell-side e-commerce

OHT 1.11 Relationship between e-commerce and e-business Figure: Three alternative definitions of the relationship between e-commerce and e- business

OHT 1.12 Internet marketing contexts Figure: Summary of transaction alternatives between businesses and consumers

OHT 1.13 Internet applications Figure: Market and product strategic grid

OHT 1.14 How it works - components Figure: Infrastructure components of the Internet

OHT 1.15 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

OHT 1.16 Interactivity and intelligence Figure: Summary of communication models for: (a) traditional media, (b) new media

OHT 1.17 Individualization Figure: Summary of degree of individualisation for: (a) traditional media (same message), (b) new media (unique messages and more information exchange between customers)‏

OHT 1.18 Integration Figure: Channel requiring integration as part of integrated e-marketing strategy

OHT 1.19 Mixed-mode buying Figure: The role of mixed-mode buying in Internet marketing

OHT 1.20 Conversion marketing Figure: A model of the Internet marketing conversion process

OHT 1.21 Conversion marketing - example Figure: An example of the conversion process