1. Copyright © 2003 by Marketspace LLC Mohammed, Fisher, Jaworski, Paddison Internet Marketing, 2 nd Ed Chapter 1 Lecture Slides Introduction to Internet Marketing Exhibits and Tables

2. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Introduction to Internet Marketing — Today’s Objectives  Objectives will be to: Define the scope of Internet marketing Explore the stages of Internet marketing Discuss the relationship stages and the Marketspace Matrix Examine guidelines for success Outline the progression of the book

3. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Chapter 1: Introduction to Internet Marketing The Scope and Impact of Internet Marketing The Seven-Stage Cycle of Internet Marketing The Four Key Relationship Stages and the Marketspace Matrix Guidelines for Internet Marketing Success Overview of the Book Conclusion

4. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC

5. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Chapter 1: Introduction to Internet Marketing The Scope and Impact of Internet Marketing The Seven-Stage Cycle of Internet Marketing The Four Key Relationship Stages and the Marketspace Matrix Guidelines for Internet Marketing Success Overview of the Book Conclusion

6. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Cell 4 Cell 2 Cell 3 Cell 1 Location of Revenue Stream Bricks-and- Mortar Online Marketing Resource Allocation OfflineOnline Internet Marketing Impact Exhibit 1–1: Assessing the Impact of Internet Marketing

7. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Supporting Slide 1–A: Drill-Down: Common Myths Associated with Internet Marketing Drill-Down

8. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Chapter 1: Introduction to Internet Marketing The Scope and Impact of Internet Marketing The Seven-Stage Cycle of Internet Marketing The Four Key Relationship Stages and the Marketspace Matrix Guidelines for Internet Marketing Success Overview of the Book Conclusion

9. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Exhibit 1–2: The Seven-Stage Cycle of Internet Marketing Step 2 Formulating the Marketing Strategy Step 3 Designing the Customer Experience Step 4 Crafting the Customer Interface Step 5 Designing the Marketing Program Step 6 Step 6. Leveraging Customer Information Through Technology Step 7 Evaluating the Marketing Program Step 1 Framing the Market Opportunity

10. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Exhibit 1–3: Framework for Market Opportunity Seed Opportunity in Existing of New Value System Identify Unmet and Underserved Need(s) Identify Target Segment(s) Declare Company’s Resource-Based Opportunity for Advantage Assess Competitive, Technological, and Financial Opportunity Attractiveness Make “Go / No-Go” Assessment

11. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Exhibit 1–4: Corporate, Business-Unit, and Marketing Strategy Corporate Strategy Business-Unit Strategy Amazon Tools and Hardware Integrated Marketing Strategy for Tools and Hardware Unit Example Integrated Marketing Strategy for Unit Internet Marketing Traditional Marketing Online Marketing Mix Offline Marketing Mix

12. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Chapter 1: Introduction to Internet Marketing The Scope and Impact of Internet Marketing The Seven-Stage Cycle of Internet Marketing The Four Key Relationship Stages and the Marketspace Matrix Guidelines for Internet Marketing Success Overview of the Book Conclusion

13. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Awareness Exploration / Expansion Exploration / Expansion Commitment Dissolution Exhibit 1–5: The Four Key Stages of the Customer Relationship

14. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Exhibit 1–6: The Four Key Stages of the Customer Relationship by Level of Intensity Level of Intensity Stages of Customer Relationships Level of Intensity and Degree of Relationship AwarenessExplorationCommitmentDissolution Intensity

15. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Exhibit 1–7: Internet Marketing Mix Branding Product Pricing Communication CommunityDistribution

16. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Exhibit 1–8: Impact of the 2Is on the Internet Marketing MixInteractivity Individualization Branding Product Pricing Communication Distribution Community

17. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Exhibit 1-9: The Marketspace Matrix Relationship Stages Categories of Levers Branding Branding can also accentuate (or lessen) the impact of the levers in each cell The 2Is should influence the design of each cell in the matrix

18. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Chapter 1: Introduction to Internet Marketing The Scope and Impact of Internet Marketing The Seven-Stage Cycle of Internet Marketing The Four Key Relationship Stages and the Marketspace Matrix Guidelines for Internet Marketing Success Overview of the Book Conclusion

19. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Supporting Slide 1–B: Point-Counterpoint: Arguing for New Rules or Old Rules of Marketing Point-Counterpoint

20. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Exhibit 1–10: The New Rules of Marketing for the Global Digital World 1.Target segments of one and create virtual communities. 2.Design for customer-led positioning. 3.Expand the role of branding in the global portfolio. 4.Leverage consumers as co-producers through customization. 5.Use creative pricing in the Priceline.com world. 6.Create anytime-anyplace distribution and integrated supply chains. 7.Redesign advertising as interactive and integrated marketing, communication, education, and entertainment. 8.Reinvent marketing research and modeling as knowledge creation and dissemination. 9.Use adaptive experimentation. 10.Redesign the strategy process and supporting organizational architecture. Source: Jerry Wind and Vijay Mahajan (2001). Digital Marketing, New York: John Wiler and Sons, p.8

21. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Supporting Slide 1–C: Critical Success Factors for Internet Marketing Executives Customer Advocacy and Insight Integration Balanced Thinking Passion and Entrepreneurial Spirit Willingness to Accept Risk and Ambiguity The willingness to understand customer needs and provide added value to each customer interaction The ability to manage marketing campaigns in a more uncertain, dynamic environment, with a new set of tools that often have few records of successes, failures or best-practices The ability to have a holistic view of the customer and the enterprise in order to create a uniquely advantaged strategic plan Being able to understand the dynamic tension between one-to-one marketing and mass marketing and being able to strike a strategic balance between them The willingness to change the status quo, take chances and use “bleeding edge” tools to lead teams to success

22. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Chapter 1: Introduction to Internet Marketing The Scope and Impact of Internet Marketing The Seven-Stage Cycle of Internet Marketing The Four Key Relationship Stages and the Marketspace Matrix Guidelines for Internet Marketing Success Overview of the Book Conclusion

23. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC 4. Crafting the Customer Interface 1. Framing the Market Opportunity 2. Formulating the Market Strategy 3. Designing the Customer Experience Exhibit 1–11: Overview of the Chapters 5. Designing the Marketing Program 6. Leveraging Customer Information Through Technology 7. Evaluating the Marketing Program Customer relationships Product Pricing Communication Community Distribution Branding Designing the Marketspace Matrix Illustration: marketing campaign for The Lord of the Rings: The Fellowship of the Ring Customer metrics

24. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Chapter 1: Introduction to Internet Marketing The Scope and Impact of Internet Marketing The Seven-Stage Cycle of Internet Marketing The Four Key Relationship Stages and the Marketspace Matrix Guidelines for Internet Marketing Success Overview of the Book Conclusion

25. Last Updated: 04/10/03 Copyright  2003 by Marketspace LLC Traditional marketing methods are still highly relevant in the networked economy, though firms must now consider a host of new and innovative marketing methods available online (e.g., dynamic pricing, online community) In contrast to the one-way mass promotion that characterizes modern marketing, Internet marketing enables firms to engage the individual in personalized dialogues Individualization and Interactivity are two forces that make online marketing different Marketing, and the relationships it creates, should be considered in the context of particular processes and stages Introduction to Internet Marketing — Conclusion