Internet Marketing Concepts

Part 2

Objectives

• The new communication medium

• The Internet and the marketing mix

• Key elements of effective web site designs

• Internet marketing versus conventional marketing

The Internet as a New Communication Medium

• Digital, interactive, and a greater depth of information can be published

• Demographics may be different

• Culture of purchasers may be different

• Markets may be different

The Digital Medium of the Internet

• Predominantly a pull medium• Enables interaction• Potential for one-to-one or many-to-many

communication• The medium changes the nature of

advertising• Changes to the distribution channel and

marketplace enabled by the digital media

Communication Using the Internet

Internet Medium

OC1 C5 O

C4

C2

O

OC3

O

Content

M

Content M

Content

M

Content

MMM

The Communication Model

N O I S E

Source(web site)

Message encoding

Receiver(web browser)

Message decodingSite content or e-mail

Feedback (transaction log file)

Cultural Difference

• Uses of the Internet in the UK (1998) includes:– Sending email (72 %)

– Research (63%)

– Education (58%)

– Seeking information on products and services (53%)

– Hobbies and interests (53%)

– Games playing (32%)

– Planning holidays (24%)Web reference: NOP Research Group (www.nopres.co.uk)

In Europe and the USA

• Average age of user is 35.7 years old• 38.5 % female and 61.5% male (22%, 72%

Europe)• 65% access the Web from home (29% Europe)• Average household income $53,000Web reference: KPMG (www.kpmg.co.uk), GVU (

www.gvu.gatech.edu/user_surveys)

Cultural Difference

• Techno_lusters – focused in the culture and technology• Academic buffs – originally on of the main types of users• Techno-boffins – similar to the techno-lusters, but make more directed

use of the technology for business• Get aheads – use the Internet as a lifestyle accessory, use email and

Internet for product selection• Hobbyists – people with specialist interests who use the Internet for

purchase selection (golfers…)• Knowledge traders – business oriented users who turn to the Internet

for news services and information on best business practice• Business bods – general business users in management roles• Home users – members or families looking for education or purchases

Internet and Marketing Mix

Product• Quality• Image• Branding• Features• Variants• Mix• Support• Customer

service• Use

occasion• Availability• Warranties

Using the Internet to vary the marketing mix

Price• Positioning• List• Discounts• Credit• Payment

methods• Free or

value-added elements

Promotion• Marketing

communications

• Personal promotion

• Sales promotion

• PR• Branding• Direct

marketing

Processes• Customer

focus• Business-

led• IT-

supported• Design

features• Research

and development

People• Individuals

on marketing activities

• Individuals on customer contact

• Recruitment• Culture/

image• Training and

skills• Remunera-

tion

Place• Trade

channels• Sales

support• Channel

number• Segmented

channels

The buying Process on the InternetStages in

buying processCommunications

objectives

Internet marketing techniques

1. Unaware

2. Aware of product need, develop specification

3. Suppliers search

4. Evaluate and select

5. Purchase

6. Post-purchase evaluation and feedback

Generate awareness

Support use and retain business

Lead generation(from range of customers)

Assist purchasedecision

Facilitate purchase

Position Features, benefits and brands

Banner advertising,PR, links

Web site content(Plus search support)

Search engines,Intermediaries

Web site content,Intermediaries

Web site content

Personalized webSite content and interaction

Key Elements of Effective Web Site Design

• Capture

• Content

• Community

• Commerce

• Customer orientation

• Credibility

Alternative Factors

• Attract users

• Engage users’ interest and participation

• Retain users and ensure that they return to the site

• Learn about customer preference

• Relate back to customers with customized interactions

Internet Marketing vs Conventional Marketing

• It is a many-to-many medium

• Consumers can interact with the medium

• Consumers can provide commercially oriented content to the medium