Internet properties and marketing implications MARK 430 Advanced Online Marketing Week 1.
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Transcript of Internet properties and marketing implications MARK 430 Advanced Online Marketing Week 1.
Internet properties and marketing implications
MARK 430
Advanced Online Marketing
Week 1
After this class you will understand:
What online or eMarketing is
How it differs from traditional marketing
What the properties of the Internet are that offer opportunities (and challenges) to marketers
Why study online marketing? Traditional marketing practices are being transformed
Continuing strong growth in business-to-consumer and business-to-business eCommerce
New skills, knowledge and strategies in high demand in the business world
Marketers need to understand technology and collaborate with IT colleagues
E-Business Markets
There are three important markets that both sell to and buy from each other: Businesses
Consumers
Governments
What is online marketing / e-marketing?
marketing is a process for creating and delivering goods, services, and ideas to customers
e-Business components involved: e-commerce business intelligence supply chain management
What is online marketing / e-marketing?
marketing is based on exchanges that are valuable to both the customer and the company
e-Business components involved: enterprise resource planning business intelligence customer relationship management
eMarketing objectives
Recognizing customer needs and filling them better than the competition
Helping to make a company’s offerings something that customers want to buy
Is eMarketing simply information technology applied to traditional
marketing?
E-marketing affects traditional marketing in two ways: Increases efficiency in traditional marketing functions
Use of Internet technology transforms many marketing strategies.
Results: new business models that add customer value and/or increase company profitability.
The impact of the Internet on the marketing mix
Product – new products, new delivery mechanisms
Price – dynamic pricing, comparison pricing, bartering, bidding
Place – direct distribution of digital products, supply chain management, channel integration
Promotion – new communications media, advertising efforts
The transformation of the marketing mix
Shift away from a selling orientation toward a customer-focused or customer-centric orientation
The 4 Ps become the 4 Cs (Albert and Sanders 2002) Customer focused solution Cost (increase in value) Convenience Communication
Key issues for corporations:
How to use information technology profitably
How to understand what technology means for their business strategies
How marketing strategies can be enhanced by the Internet, databases, wireless mobile devices, and other technologies
What’s next after the rapid growth of the Internet and the dot-com bubble
Internet properties and marketing implications
Internet properties and marketing implications
Internet Properties and Marketing Implications
Internet means: new channels for selling and marketing new pricing and promotion options new forms of market research and new products improved distribution and customer service
Most important is a shift toward customer power
What is driving customer power?
More options
More information
Simpler transactions
Network model versus broadcast model (or why the Internet is not TV) buyer attention becomes a scarce commodity
Revenge of the Consumer The rebellion started with television channel surfing
using the remote control – now TiVo and pop-up killers.
Now consumers have control via the mouse.
Consumers are more demanding and more sophisticated, and marketers will have to become better at delivering customer value.
Caveat emptor (let the buyer beware) becomes cave emptorum (beware of the buyer)
The Cluetrain Manifesto: the end of business as usual
A powerful global conversation has begun.
Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed.
As a direct result, markets are getting smarter – and getting smarter faster than most companies
The Cluetrain Manifesto. Levine, Locke, Searls, and Weinberger. Perseus Publishing. 2000
Consumer NeedsWhat do customers want in the information economy?
Privacy: Customers want marketers to keep their data confidential + don’t want to be bothered by sales calls at home during dinner,
Want marketers to ask permission before sending commercial e-mail messages,
Want e-commerce to provide convenience, self-service, speed, good customer service, personal attention, and value.
Consumer Needse-Marketing has the potential to meet all these needs:
With mass customization individuals can contact firms over the Internet and receive responses tailored to their needs,
Business can also customize and personalize products and communications to strengthen long-term relationships with customers.
E.g. Amazon.com presents personalized Web pages to users
4 steps to successful marketing strategy
1. Understand customer needs
2. Formulate a strategy to fill those needs
3. Implement effectively and efficiently
4. Build trusting relationships with customers
(Urban pg.7)
Over the next 3 months we will examine and understand various elements of this strategy