1. Chapter 14 Ver 2e1 ©2000 South-Western College Publishing Internet Marketing Chapter 14 Prepared by Deborah Baker Texas Christian University

2. Chapter 14 Ver 2e2 Chapter 14 Objectives 1.Understand how the Internet affects marketing. 2.Describe various forms of Internet marketing. 3.Discuss strategic considerations about Internet marketing. (continued) ©2000 South-Western College Publishing

3. Chapter 14 Ver 2e3 Chapter 14 Objectives 4.Discuss financial implications of Internet marketing. 5.Explain how to incorporate Internet marketing into an overall marketing plan. 6.Discuss several trends and the effects they may have on Internet marketing in the future. ©2000 South-Western College Publishing

4. Chapter 14 Ver 2e4 The Internet and the World Wide Web ©2000 South-Western College Publishing 1960s Developed in the by the U.S. military 1960s Developed in the by the U.S. military Use by research institutes and universities (Internet) Use by research institutes and universities (Internet) 1991 Commercial activity permitted 1991 Commercial activity permitted

5. Chapter 14 Ver 2e5 Leave messages for firm’s people Find out more about the company Solve problems Make purchases The New Business Franchise ©2000 South-Western College Publishing The Virtual Store The Get answers to questions Find out about products/services

6. Chapter 14 Ver 2e6 Web Survival Requirements Products that fulfill needs Product promotion Products that are available Products at a fair price Playing in the Big League ©2000 South-Western College Publishing

7. Chapter 14 Ver 2e7 Playing in the Big League ©2000 South-Western College Publishing Advantages Building a Small Internet Business Disadvantages  Smaller financial investment  Agility to make strategic changes  Considerable time investment  Requires technological competence

8. Chapter 14 Ver 2e8 The Internet’s Online Population ©2000 South-Western College Publishing

9. Chapter 14 Ver 2e9 Internet International Opportunities ©2000 South-Western College Publishing Offers relatively cheap, versatile, and technically efficient service Allows businesses in developing countries to “leapfrog” into the development mainstream Eliminates disadvantages, such as distance from markets, under-invested infrastructure, and under-utilized capacity

10. Chapter 14 Ver 2e10 Forms of Internet Marketing ©2000 South-Western College Publishing Customer Relationship Marketing Internet Retailing Advertising Newsletter and Discussion Lists E-Mail Current Forms of Internet Marketing Current Forms of Internet Marketing

11. Chapter 14 Ver 2e11 Forms of Internet Marketing ©2000 South-Western College Publishing E-Mail Marketing Untargeted Targeted  No/Minimal Cost  “Spamming”  Often offensive  Ineffective  “Qualified” recipients  Cost of $.15-.30 per address

12. Chapter 14 Ver 2e12 Newsletter and Discussion List Marketing ©2000 South-Western College Publishing Advantages of “Ezines” Focused on a particular subject or topic Provide a means to stay in touch with clientele Inform customers of new products and services Generate income by selling advertising space

13. Chapter 14 Ver 2e13 Differences in Ezines vs. Paper ©2000 South-Western College Publishing Ezines cost little or no money Target individuals using e-mail list service Subscriptions can be offered for free Subscriptions grow as newsletter is shared Discussion list participants can exchange ideas

14. Chapter 14 Ver 2e14 Advertising on the Web ©2000 South-Western College Publishing Faster growth than any other media in history

15. Chapter 14 Ver 2e15 Internet Retailing ©2000 South-Western College Publishing Advantages Disadvantages  Shop “24 / 7 / 365”  Easy to “window shop”  Get lower prices  Convenient delivery  No social experience  No “feel” of products  No individual rapport

16. Chapter 14 Ver 2e16 Internet Demographics and Trends ©2000 South-Western College Publishing Motivation to use technology Motivation to use technology Income Attitude toward technology Factors that Influence On-Line BuyingBehavior BuyingBehavior

17. Chapter 14 Ver 2e17 Internet Buyer Categories Early Adopters Mainstream Laggards ©2000 South-Western College Publishing

18. Chapter 14 Ver 2e18 Marketing Research Through the Web ©2000 South-Western College Publishing Easier access to information Current information content Complex searches Multi-media Lower publication costs Advantages of Electronic Publications over Print Media

19. Chapter 14 Ver 2e19 ©2000 South-Western College Publishing Marketing Research Through the Web Primary Research using the Web E-mail Surveys Internet Focuses Groups Web-based Surveys

20. Chapter 14 Ver 2e20 Overnight Billionaires ©2000 South-Western College Publishing Build a profitable company to attract long-term loyalty Build a profitable company to attract long-term loyalty Acquire shares of other companies Acquire shares of other companies Sell the firm to a more established company Sell the firm to a more established company Ways to Convert Virtual Wealth into Actual Wealth $ $ $

21. Chapter 14 Ver 2e21 ©2000 South-Western College Publishing Creating an Internet Marketing Plan Purpose or Goal Target Audience Marketing Mix Integrated Marketing Strategy Required Resources Means for Evaluation Elements of an Internet Marketing Plan Elements of an Internet Marketing Plan

22. Chapter 14 Ver 2e22 ©2000 South-Western College Publishing Setting Internet Marketing Goals Consider ways the Internet can be used to... Increase or enhance company exposure Improve customer service Provide new products or services Add value to existing products or services Lower overall costs for the company Create one-to-one relationships with customers

23. Chapter 14 Ver 2e23 ©2000 South-Western College Publishing Determining the Marketing Mix Internetvs.ConventionalChannels Promotion Encounters Direct Product Experience Price Changes Physical Contact

24. Chapter 14 Ver 2e24 ©2000 South-Western College Publishing Integrate Conventional and Internet Strategies Augment existing marketing programs Integrating Marketing Strategies Project a consistent and coherent presence Enhance successful marketing programs

25. Chapter 14 Ver 2e25 Establishing an Internet Marketing Budget ©2000 South-Western College Publishing Prior experience in running an Internet marketing program Prior experience in running an Internet marketing program Degree of program sophistication Availability of internal resources Magnitude of the program Dynamics of the program

26. Chapter 14 Ver 2e26 Evaluating the Outcome ©2000 South-Western College Publishing Important Considerations  Are we reaching the target audience?  Who is visiting the web site?  Can visitors easily move around the web site?  Are visitors getting what they want?

27. Chapter 14 Ver 2e27 Trends Affecting Internet Marketing ©2000 South-Western College Publishing Revenue pirating from brick-and-mortar counterparts Presence of leaner, more flexible organizations Increased consumer participation in virtual communities Further expansion of the Internet into the global arena

28. Chapter 14 Ver 2e28 The Agile Organization ©2000 South-Western College Publishing Coping in a Changing Environment  Have an acute feeling of paranoia  Foster creative and strategic thought  Create an agile organization