Online Marketing

Gay, Charlesworth & Esen

Chapter One

Early Internet Prophecies

“ The Internet is a tidal wave. It will wash over nearly all industries drowning those who don’t learn to swim in its waves”

Bill Gates CEO Microsoft

Online Marketing definitions• “The use of Internet and related digital

information and communications technologies to achieve marketing objectives”.

Institute of Direct Marketing

• ‘the process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products and services that satisfy the goals of both parties’

Mohammed 2001

Internet Advantages & Disadvantages

o The Internet can increase an organisation’s geographic coverage beyond its traditional heartland.

o New customers can be reached.

o The Internet provides a low cost effective way of transacting with customers compared to traditional selling costs.

o A site can be open for business all day everyday providing customer convenience.

o The Internet is a fast and flexible communications tool

o Customer resistance to change, especially older and disadvantaged people.

o Public concerns over privacy issues, such as SPAM and chat-rooms.

o Lingering security doubts over fraud and Phishing (hackers) and network security and stability. (Worms).

o Lack of trust with unknown virtual traders.

o The Internet’s sensory boundaries limit senses like taste and touch which influence buyer decisions.

Ten C’s Of Marketing for the Modern Economy

1.Customer

2.Corporate Culture

3.Convenience 4. Competition

6.Consistency 

 10.Control

 

 9.Coordination 8.Customisation

7.Creative Content

 

 

 

5. Communications

Three Digital Routes

• Grasp the nettle – be visionary and exploit

the web’s potential

• Follow the leader – a more cautious

approach learning from others’ mistakes

• Stand Firm – revitalise the offline experience

The Online Marketing Environment

Organisational Offerings

The Mix and the Ten C’s of Internet Marketing

Microenvironment Suppliers, distributors,Stakeholders & competitors

Macro environment STEP Analysis

The Customer