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Transcript of Chaffey, Internet Marketing, 3 rd Edition © Pearson Education Limited 2007 Slide 2.1 Chapter 2 The...
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.1
Chapter 2The Internet micro-environment
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.2
Learning objectives
• Identify the different elements of the Internet environment that impact on an organisation’s Internet marketing strategy.
• Assess competitor, customer and intermediary use of the Internet.
• Evaluate the relevance of changes in trading patterns and business models enabled by e-commerce.
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.3
Questions for marketers
• How are the competitive forces and value chain changed by the Internet?
• How do I assess the demand for Internet services from customers?
• How do I compare our online marketing with that of competitors?
• What is the relevance of the new intermediaries?
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.4
Figure 2.1 Increase in traffic volume at Handbag.com in selected months when audited. Page impressions are pages served to visitors, visitor sessions are visits up to a maximum of 30 minutes and unique visitors is the number of individuals visiting the site in a given monthSource: Compiled from ABC Electronic (ww.abce.org.uk)
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.5
Figure 2.2 The IMRG retail index shows online sales volume in the UK relative to 100in April 2000Source: Interactive Media in Retail Group (www.imrg.org)
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.6
The Internet marketing environment
Figure 2.3 The Internet marketing environment
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.7
Porter’s five forces (or use Fig 2.3)
Power ofsuppliers
Bargainingpowers ofcustomers
Extent of rivalrybetween
competitors
Threat ofsubsitutes
Threat of newentrants
The business
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.8
Figure 2.4 Value creation model
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.9
Alternative models of the value chain
Figure 2.5 Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.10
A value network
Figure 2.6 Members of the value network of an organisationSource: Adapted from Deise at. (2000)
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.11
Disintermediation
Figure 2.7 Disintermediation of a consumer distribution channel showing: (a) the original situation, (b) disintermediation omitting the wholesaler, and (c) disintermediation omitting both wholesaler and retailer
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.12
See www.screentrade.co.uk
Figure 2.8 Screentrade insurance intermediary (www.screentrade.com)
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.13
Figure 2.9 From (a) original situation to (b) disintermediation or(c) reintermediation or countermediation
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.14
Figure 2.10 Example of a channel chain map for consumers selecting an estateagents to sell their property
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.15
Countermediation
• Creation of a new intermediary
• Example:– B&Q www.diy.com– Opodo www.opodo.com– Boots www.wellbeing.com
www.handbag.com
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.16
Alternative online trading locations
Figure 2.11 Different types of online trading location
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.17
Figure 2.12 Alternative perspectives on business models
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.18
Assessing customer demand
Need to assess:1. Access to Internet
2. Proportion of customers influenced by channel
3. Proportion of customers who buy direct
See Chapter 4
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.19
Figure 2.13 A model of the Internet marketing conversion process
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.20
Figure 2.14 An example of a conversion model
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.21
Figure 2.15 Global variation in number of PCs per hundred population and percentage Internet access in 2004Source: ITU (www.itu.int)
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.22
Figure 2.16 UK rate of adoption of different digital mediaSource: MORI Technology Tracker, September 2006. See www.mori.com/technology/techtracker.shtml for details
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.23
Figure 2.18 The most popular search terms typed into a search engine that resulted in traffic to www.ba.com, four weeks ending 18.03.06 Source: Hitwise (www.hitwise.co.uk)
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.24
Figure 2.18 The most popular search terms typed into a search engine that resulted in traffic to www.ba.com, four weeks ending 18.03.06 (Continued) Source: Hitwise (www.hitwise.co.uk)
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.25
Figure 2.19 Summary of demographic characteristics of Internet usersSource: (September 2003) MORI Technology Tracker. See www.mori.com/technology/techtracker.shtml for details
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.26
Figure 2.20 Summary of variation in access to the digital media according tosocial groupSource: (September 2005) MORI Technology Tracker. See www.mori.com/technology/techtracker.shtml for details
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.27
Figure 2.21 Percentage of businesses that order onlineSource: DTI (2004)
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.28
Figure 2.22 Development of experience in Internet usage
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.29
Select supplier(enquire)
‘Tracker’Completing
‘Hunter’Researching
‘Explorer’Browsing
Directed goal-orientedUndirected, exploratory
Destination purchase
(buy)
Definerequirements
Assess supplier
capabilities
‘Inspireme’
‘What’s outthere’
Source: Author
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.30
Figure 2.23 A summary of how the Internet can impact on the buying process for a new purchaser
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.31
Figure 2.24 Initial product search showing e-retailers available
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.32
Figure 2.25 Comet product comparison facility (www.comet.co.uk)
Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007
Slide 2.33
Figure 2.26 Kelkoo.com, a European price comparison site