1. Chapter 1 Introduction to Internet Marketing

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

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?

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)

5. The impact of the Internet
Organisation
Sector
Online contribution
Overall turnover
Cisco
B2B Networking hardware
90%
$19bn
Easyjet
B2C Air travel
85%
£264m
Dell
B2B, B2C Computers
48%
$25bn
Lands End Clothing
B2C Clothing
11%
$1.3bn
Book Club Associates
B2C Books
10%
£100m
Electrocomponents
B2B Electronics 7%
£761m Group
Domino’s Pizza
B2C Food
3.4%
£76m
Tesco
B2C Grocery
1.4%
£18.4bn
Thomas Cook
B2C Travel
<1%
£1.8bn

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?

7. Demand – Internet access
Figure 2.13 Global variation in number of PCs per hundred population and percent Internet access in 2000
Source: ITU (

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
Give examples of how the Internet (web and ) contributes to marketing

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

10. Example – you’ve been tangoed

11. E-business and e-commerce
Define e-commerce
What is the relationship between e-commerce and e-business?

12. E-business and e-commerce
Figure 1.2 The distinction between buy-side and sell-side e-commerce

13. Relationship between e-commerce and e-business
Figure 1.3 Three alternative definitions of the relationship between e-commerce and e-business

14. Internet marketing contexts
Figure 1.4 Summary of transaction alternatives between businesses and consumers

15. Internet applications
Figure 1.5 Market and product strategic grid

16. Example - Guinness

17. Drivers Cost/efficiency drivers Competitiveness drivers
Increase speed of dispatch
Reduce sales cost
Reduce operating costs
Competitiveness drivers
Customer demand
Range and quality of services offered
Avoid losing market share
Exploit new markets

18. Example rswww.com

19. Technology - addressing
Common gTLDs are:
.com represents an international or American company such as
.co.uk represents a company based in the UK such as
.ac.uk a UK based University (e.g.
.org.uk or .org are not for profit organisations (e.g.
.net a network provider such as

20. How it works - components
Figure 1.9 Infrastructure components of the Internet

21. How it works – client/server
Figure 1.10 Information exchange between a web browser and a web server

22. How it works - HTML
Figure 1.11 Home page index.html for The B2B Company in a web browser showing HTML source in text editor

23. Internet, intranet and extranet
Figure 1.12 The relationship between access to intranets, extranets and the Internet

24. Interactivity and intelligence
Figure 1.13 Summary of communication models for: (a) traditional media, (b) new media

25. Individualisation
Figure 1.14 Summary of degree of individualisation for: (a) traditional media (same message), (b) new media (unique messages and more information exchange between customers)

26. Integration
Figure 1.15 Channel requiring integration as part of integrated e-marketing strategy

27. Mixed-mode buying
Figure 1.16 The role of mixed-mode buying in Internet marketing

28. Conversion marketing
Figure 1.17 A model of the Internet marketing conversion process

29. Conversion marketing - example
Figure 1.18 An example of the conversion process