MARKETING ON THE INTERNET The Internet includes a number of data networks set-up by companies and organizations, the World Wide Web and e- mail, plus a.

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Presentation transcript:

MARKETING ON THE INTERNET The Internet includes a number of data networks set-up by companies and organizations, the World Wide Web and e- mail, plus a multitude of proprietary networks that are gravitating to the web »Lindgren 2000

HISTORY OF THE INTERNET Vannevar Bush, VP of MIT -- visionary; appointed by Franklin Roosevelt Ted Nelson (1965): XANADU >had the theoretical underpinnings of hypertext US Dept. of Defense: ARPANET (Advanced Research Projects Agency Network)>>used the TCP/IP (Transmission Control Protocol/Internet Protocol)

HISTORY OF THE INTERNET(2) NSFnet (National Science Foundation) 1989: Time Bernes-Lee of CERN (European Particle Physics Lab)>> –HTML(HyperText Markup Language) –URL (Uniform Resource Locator) –HTTP (Hypertext Transport Protocol) >>important elements of todays internet

REQUIREMENTS FOR GROWTH OF THE INTERNET Electronic Commerce –businesses have to develop electronic commerce intranets and extranets that connect to the internet Network Server Growth –Internet hosts or Internet Service Providers (ISP): 1000 in 1990>>>90 million in Jan, 1999 Sufficient number of consumers must have access to the internet

IMPROVING BUSINESS PRACTICES USINGTHE INTERNET REDUCED COSTS –FedEx>>customer service costs –CISCO>>up to date information on products; for frontline employees and customers –GE>>analysis of the supply chain –Online data versus printed information (especially important for direct marketers) –Market expansion is much easier, faster, and less expensive

IMPROVING BUSINESS PRACTICES USINGTHE INTERNET (2) INVENTORY REDUCTION –implementation of Just-in-Time delivery systems>>Amazon.com IMPROVED CUSTOMER SERVICE FedEx; CISCO; Wells Fargo Bank MARKET/PRODUCT DEVELOPMENT OPPORTUNITIES –24 hours; global reach; small or large company

TYPES OF INTERNET SITES Company/Brand Sites –info. about co. and its brands; history, mission, financial statements; how to use products; stock quotes Service Sites –to provide customer service interface; to reduce customer service costs –Banks, FedEx, UPS

TYPES OF INT. SITES (2) Selling sites –Amazon.com;L.L.Bean>>to actually sell –promotional sites –DaimlerChrysler Site>>to move potential buyer closer to purchase Information sites –revenue through subscription (WSJ); Advertising (search engines like Yahoo); or to express presence (CNNSI, New York Times)

BENEFITS OF INTERNET MARKETING Increase presence and brand equity Develop prospective customer into customer>> move toward purchase; internet is pull oriented, not push oriented Improve customer service Information transfer>>easier to send and collect information Supports direct marketing

DRAWBACKS OF INTERNET MARKETING Limited target audience –around 73 mill. users in the US (1999) –what about others? Resistance to change –concern about Internet security –need more consumer education, warranties and other security measures

MARKETING INSIGHTS ON THE INTERNET Selling on the web is interactive Promotion on the web is pull-oriented Exchange of information is key –two way flow Sites must do more than just sell –need assessment, information, assistance, etc. Size and location are no longer obstacles to success