Fundamentals of Internet Marketing Back to Table of Contents

Fundamentals of Internet Marketing


Back to Table of Contents



Marketing Basics Marketing Basics

Market Research Market Research

2

Fundamentals of Fundamentals of Internet Marketing Internet Marketing

SectionSection 12-1

SectionSection 12-2

Chapter 12

Fundamentals of Internet Marketing Fundamentals of Internet Marketing

Section 12-1Why It’s Important

Relationships between buyers and sellers are more personalized and dynamic than ever before.

To reap the benefits—and avoid the risks—of these advancements, both buyers and sellers must recognize marketing fundamentals.

3Section 12-1


Section 12-1 Key Terms

marketing

marketing mix

market segments

cross selling

promotions

virtual marketing

personalization

cookies

e-mail marketing

permission marketing

4Section 12-1


Marketing

Marketing encompasses countless business decisions, from Web-site designs to delivery options.

marketing the process of planning and carrying out the production, distribution, promotion, and pricing of products and services

5Section 12-1


The Marketing Mix

To attract new customers and keep old ones coming back, you need to create a customer-focused marketing mix.

marketing mix consists of four critical elements, collectively known as the four Ps: product, price, place, and promotion

6Section 12-1

The Marketing Mix

7

The Four Ps

Section 12-1

P

P

P

P

Product

Price

Place

Promotion


The Marketing Mix

A product is any item manufactured for sale.

Services are not material goods, but rather work done in exchange for payment.

8Section 12-1


The Marketing Mix

In marketing a product, you need to consider the level of product quality you intend to provide.

Decisions regarding product quality and service levels will depend largely on your target market.

9Section 12-1


The Marketing Mix

Some target markets include two or more market segments.

market segments distinct groups of people who share certain characteristics

10Section 12-1

The Marketing Mix

11

Market Segment Identification

Section 12-1

Demographics Psychographics Geographics Product benefits

group people by statistics such as income, age, or gender

define people by their lifestyle preferences

categorize people by their location

identify people according to the satisfaction they get from products


The Marketing Mix

Your product line is a group of related products that complement one another.

Your product mix is the full set of products offered for sale, including all product lines.

12Section 12-1


The Marketing Mix

A good product mix offers opportunities for cross selling.

cross selling generating another sale by offering related items

13Section 12-1


The Marketing Mix

Price is the amount of money a business receives in exchange for a product or service.

When setting prices, consider costs, profits, your target market, and image.

14Section 12-1


The Marketing Mix

When it comes to business, place means where customers shop and how the product or service will be delivered.

15Section 12-1


The Marketing Mix

You must inspire potential customers to visit your site and purchase your products or services through promotions.

promotions advertisements intended to inform potential customers about products or services

16Section 12-1


The Marketing Mix

You can enhance your word-of-mouth promotion with virtual marketing.

virtual marketing a cost-effective strategy that uses customers to help promote a business

17Section 12-1


The Marketing Mix

To the four Ps of the marketing mix, a fifth could be added: personalization.

personalization refers to establishing one-to-one relationships with your customers, for example greeting by name or offering book and movie recommendations based on previous visits

18Section 12-1


The Marketing Mix

Many online businesses use cookies to personalize their marketing.

cookies small text files written directly onto visitors’ hard drives, containing information such as names, shopping-cart contents, user preferences, or unique identification codes; using cookies, businesses can collect data and analyze the behavioral patterns of their customers to market personally to them

19Section 12-1


The Marketing Mix

E-mail marketing is another way in which you can establish personal relationships with your customers.

e-mail marketing inexpensive advertising method with high response rate that allows a business to establish personal relationships with customers, send customized messages, tell customers about new products and sales, or remind them to order gifts for holidays or special events in their profiles

20Section 12-1


The Marketing Mix

Recently, many companies have started using a new marketing strategy called permission marketing.

permission marketing when a potential customer has consented to receive marketing messages and will only receive advertisements about products and services they have requested

21Section 12-1


Section 12-1 Review

What is marketing, and how can it impact an online business?

How can a good product mix create successful marketing opportunities in e-commerce?

Of the four Ps of the marketing mix, how can the component place be best described?

What is permission marketing?

1.

2.

3.

4.

Section 12-1 22


Section 12-2Why It’s Important

To develop a strong marketing mix, a company must understand its customers’ needs, wants, and buying patterns.

Researching the market enables businesses to cater more accurately to their customers.

Section 12-2 23


Section 12-2 Key Terms

market research

marketing research

clickstream data

metrics

Section 12-2 24


Identifying Market Opportunities

Traditional bricks-and-mortar retailers have always collected and analyzed market data.

In the world of e-commerce, companies have their own ways of collecting market data.

25Section 12-2


Market Research

Market research can help a business to recognize opportunities.

26Section 12-2

market research encompasses all of a business’s efforts to collect data regarding the economic climate, competitor prices or strategies, governmental regulations and policies, consumer demographics, and emerging technologies; distinct from marketing research


Primary

Secondary

Market Research

There are two main types of market research.

27Section 12-2

Primary research is data gathered directly from people.

Secondary research is a summary of existing data gathered from nonhuman sources.


Market Research

Marketing research is conducted by all types of businesses.

28Section 12-2

marketing research focuses specifically on consumer behaviors and the reasons behind buying habits; it collects information about consumers, especially a company’s target market, and analyzes demographics, buying habits, product preferences, and concerns about technology; distinct from market research


Market Research

Clickstream data, or the information recorded in most server logs, is another rich source of information.

29Section 12-2

clickstream data a Web site visitor’s electronic footprints, recorded in most server logs, including their unique IPs, page views, downloaded images, and URLs


Market Research

Metrics can be used to improve site navigation, create better privacy policies, and determine which pages generate the most interest.

30Section 12-2

metrics patterns found in clickstream and other data


Market Research

Internet and traditional shoppers want similar things from their shopping experience:

31Section 12-2

easy navigation

quick and simple checkout

privacy and security

fair prices

quality products


Section 12-2 Review

How are Internet and traditional shoppers similar?

Why will a business conduct research into its distribution operations?

What is the difference between primary and secondary research? Provide examples of each.

1.

2.

3.

32Section 12-2


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