1. © 2007 by Prentice Hall 13-1 Internet Purchases What was the last purchase you made using the Internet? What percentage of your purchases are made via the Internet? What products do you purchase over the Internet? What do you think is the future for Internet businesses? What has made Google.com successful? What obstacles do Internet firms face? Discussion Slide 13

2. © 2007 by Prentice Hall 13-2 Internet Marketing Profile of Internet users Internet marketing functions E-commerce IMC and the Internet Direct and viral marketing Internet design issues 13 Chapter Overview

3. © 2007 by Prentice Hall 13-3 Internet Growth Daily access the Internet Americans – 48% Canadians – 47% Britons – 36% Communication Voice over Internet Protocol (VoIP) Web blogs Internet retail sales $144 billion, 7% of global retail sales

4. © 2007 by Prentice Hall 13-4 Building databases for e-mail campaigns. Designing e-mail campaigns linking customers to Web site information. Creating fun and innovative games to attract and keep customers coming back to Web page. Creating incentive programs. Translating printed documents, catalogs, brochures, and newsletters for the Internet. Adding graphics to the Web site. Source: Ellisor, “Business-to-Business Offer WWW Opportunities,” Houston Business Journal, (September 17, 1999), Vol. 30, No. 7, p. 18B. F I G U R E 1 3. 2 Internet Services Offered by Marketing Agencies

5. © 2007 by Prentice Hall 13-5 Advertising Sales support Customer service Public relations E-commerce (Retail store) F I G U R E 1 3. 3 Functions of the Internet

6. © 2007 by Prentice Hall 13-6 E-Commerce  Selling of goods and services on the Internet  Entry into e-commerce  Trend of future  Fad  Alternative mode of shopping  Source of information for shoppers

7. © 2007 by Prentice Hall 13-7 Top Cyber Shopping Categories Source: “Cyber Shopping,” License, Vol. 7, No. 10 (November 1004), p. 12.

8. © 2007 by Prentice Hall 13-8 E-Commerce Components Catalog Shopping cart Payment procedure

9. © 2007 by Prentice Hall 13-9 Reasons People Wary of Online Purchases Security issues Credit card charges Identity theft Fraud History and Advertising Purchasing habits Incentives

10. © 2007 by Prentice Hall 13-10 E-Commerce Incentives Financial incentives Convenience-based incentive Value-added incentive

11. © 2007 by Prentice Hall 13-11 Financial Incentives  Attract first-time purchaser  Repeat purchasers  Cyberbait  Most effective incentives  Free shipping & handling  Dollar discounts  Free gifts  Financial incentive  Meaningful  Changed periodically

12. © 2007 by Prentice Hall 13-12 Convenience Incentives  Time  Update and change Web site  Easy to locate merchandise  Convenience services  Weddings  Popular items  Measurement charts

13. © 2007 by Prentice Hall 13-13 Value-Added Incentives  Change purchasing habits – long term  Personalized shopping  Examples  Merchandise available only online  Free online courses  Barnes & Noble, Charles Schwab  Free information  Tide and Ragu

14. © 2007 by Prentice Hall 13-14 Business-to-Business E-Commerce Source: “Data,” B to B, Vol. 90, No. 5 (April 11, 2005), p. 5.

15. © 2007 by Prentice Hall 13-15 Business-to-Business E-Commerce Excellent for re-buy situations Brand name recognition important Requires incentives Financial Convenience Value-added Online exchanges and auctions Store or warehouse locator

16. © 2007 by Prentice Hall 13-16 iGo.com Http://www.igo.com

17. © 2007 by Prentice Hall 13-17 International E-Commerce Internet allows for sales worldwide. Areas to address for international business. Communication barriers Cultural differences Shipping of merchandise Internet capabilities in other countries Payment procedures Web sites in different languages. Call centers in different countries.

18. © 2007 by Prentice Hall 13-18 IMC and the Internet Important component of the IMC Communication between departments Marketing Human resource Production Information technology (IT) Call centers Shipping departments

19. © 2007 by Prentice Hall 13-19 Internet content search (38%) Word-of-mouth (30%) Internet banner (20%) Television ad (7%) Print ad (5%) Source: Don Jeffrey, “Survey Details Consumer Shopping Trends on the Net,” Billboard, (May 29, 1999), Vol. 111, No. 22, p. 47. F I G U R E 1 3. 7 What Drives People to a New Site?

20. © 2007 by Prentice Hall 13-20 IMC and the Internet Search engine key words Online advertising E-mail advertising Blogs Off-line advertising

21. © 2007 by Prentice Hall 13-21 Why Dot.com Print Ads Fail to Grab and Hold Attention Lack visual power. Ambiguous illustrations that require too much time and effort to understand. Often is not legible. Contains no optimum “flow.” Tends to ignore the reader’s question, “what’s in it for me?” Research Study by Roper Starch Worldwide (November 13, 2000)

22. © 2007 by Prentice Hall 13-22 IMC and the Internet Branding Brand image important 82% brand name influenced online purchase Web site must support brand image Cyberbranding Brand spiraling Halo brand effect

23. © 2007 by Prentice Hall 13-23 Information Online Impacts Brand Impressions Travel or lodging27% Clothing or apparel33% Music24% Household products31% Electronics or software40% Books29% Toys19% Gifts, flowers, or cards21% Information companies had online influenced the impressions consumers had of a brand, even If the product was purchased in a store. The data below indicate the percentage of consumers who said online content changed their view of a brand. Source: “Far-Reaching Effects,” Marketing News, Vol. 38 (February 1, 2004), p. 4.

24. © 2007 by Prentice Hall 13-24 Putting the Web address on printed materials and promotional items. (91%) Advertising in trade journals. (74%) Registering the Web site with search engines for keywords. (72%) Buying banners on other sites. (25%) F I G U R E 1 3. 8 B-to-B Techniques to Boost Web Site Awareness

25. © 2007 by Prentice Hall 13-25 This Juno ad was placed in trade magazines to increase business awareness. It alludes to the difficulty of proper targeting. Http://www.juno.com

26. © 2007 by Prentice Hall 13-26 This Buzzsaw.com advertisement was placed in trade magazines for the construction industry. The company promises to help business evolve and survive as the industry undergoes rapid change. http://www.buzzsaw.com

27. © 2007 by Prentice Hall 13-27 IMC and the Internet Brand Loyalty Brand-loyal consumers Communication key to developing loyalty Make shopping or browsing pleasurable Establish one-to-one communications Personalization of information Niche customers

28. © 2007 by Prentice Hall 13-28 IMC and the Internet Sales Support Provide information to sales staff Client information Product information Company information Provide information to customers Prospecting Qualifying prospects Gathering information

29. © 2007 by Prentice Hall 13-29 IMC and the Internet Customer Service Cost-effective method Easy-to-use Web site Alternative communication channels Discussion groups Chat rooms Blogs Access by businesses Access by manufacturers

30. © 2007 by Prentice Hall 13-30 IMC and the Internet Customer Service Response time to inquiries 37% satisfied with online customer service, compared to 85% for traditional Older consumers less satisfied than younger consumers Only 34% acknowledge receipt of customer e-mails 24% of e-mails or inquiries are never answered

31. © 2007 by Prentice Hall 13-31 Steps to Improve Customer Service Institute of Management Administration (IOMA) 1)Knowledgeable service reps 2)Confirm customer’s order or inquiry – provide timeframe 3)Provide personal touch 4)Offer opportunity for personal communication 5)Use good communication skills 6)Be aware of work habits of customers

32. © 2007 by Prentice Hall 13-32 Direct Marketing Internet is ideal medium Direct mail is most effective driver for online direct marketing Interactive marketing Personalization of content, offers, and e-mails Blue Martini E-Merchandising Http://www.bluemartini.com Edify Smart Options Http://www.edify.com Direct e-mails, request permission

33. © 2007 by Prentice Hall 13-33 Viral Marketing Prepared ad attached to e-mail Word-of-mouth advocacy Message passed voluntarily Higher percentage pass message along to others Scope Mazda

34. © 2007 by Prentice Hall 13-34 Clueless banners Slow loading front page Forcing people to go through numerous screens Too much verbal information Too many technical terms Sites that are hard to navigate F I G U R E 1 3. 9 Clues to Poor Design

35. © 2007 by Prentice Hall 13-35 Decide strategic purpose. Easy access and quick loading. Written content should be precise. Content is key. Graphics should support content. Make an offer to encourage a response. Ask for site evaluation. Provide easy to use navigation links on every page. Use gimmicks to gain attention at the beginning. Change Web site on a regular basis. Measure results continually. Source: Based on Ray Jutkins, “13 Ideas That Could Lead to Successful Web Marketing,” Advertising Age’s Business Marketing, (June 1999), Vol. 84, No. 6, p. 27. F I G U R E 1 3. 1 0 Tips for Creating Winning Web Sites

36. © 2007 by Prentice Hall 13-36 A Web site with clear navigation. Click image to go to site.