Marketing by Evan Berman Chp 07

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Copyright Atomic Dog Publishing, 2007

Chapter 7:

Marketing and the Internet

Joel R. Evans & Barry Berman

Marketing, 10e: Marketing in the 21st Century


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Chapter Objectives

To demonstrate why the Internet is a valuable

marketing tool

To explore the multifaceted potential marketing

roles for the Internet To show how to develop an Internet marketing

strategy

To illustrate how the Internet is being utilized to

enhance marketing strategies To consider the challenges of using the Internet in

marketing and to forecast the future of E-

marketing


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Basic Internet Terminology

The Internetis a global

electronic superhighway of

computer networks anetwork of networks in

which users at one computer

can get information from

another computer (and

sometimes talk directly tousers at other computers).


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The World Wide Web (WWW)

The World Wide Webcomprises all of the resourcesand users on the Internet

using the Hypertext TransferProtocol (HTTP).

It is a way of accessing theInternet, whereby peoplework with easy-to-use Web

addresses and pages. Through the Web, users see

words, colorful charts,pictures, and videoand hearaudio.


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E-marketing and E-commerce

E-marketing includes anymarketing activity that isconducted through theInternet, from customeranalysis to marketing-mixcomponents.

E-commerce refers torevenue-generating Internet

transactions. E-marketing is the broader

concept, and it does notnecessarily have sales as theprimary goal.


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The Internet as a Marketing Tool

The Internet is a formidable

presence in the world

economy because of its: Low cost.

Wide geographic reach.

Potentially vast array

of marketing roles itcan serve.


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Internet and Virtual Reality

Unlimited

GeographicAccess

Technology

Applications

to All Fields

Internet Access

Data

Warehousing

Networks

Basics

Information

Processing

DomainNames

.com

.edu

.gov

InternetIntranet

Xtranet



Global Reach and Value of the WWW

The Internet facilitatesinteractivity among channelmembers and final consumers:

In B2C, firms communicate and

interact with final consumers. In B2B, firms can efficiently

communicate and interact withother businesses.

In B2B2C, firms communicateand interact with each other

regarding joint consumerventures.

In C2C, individuals interact andcommunicate, globally, withothers connected to the Web.

Instant communications

Virtual reality

Real time

E-mail

Its a small, small world!



Three Phases of E-Marketing and the

Internet

The evolution of E-marketingincludes:

Bricks-and-mortar firmsthose traditional companies

that are not yet involved in theWWW.

Clicks-only firmsthose thatconduct business only via theInternet and are considered tobe innovators in the field.

Bricks-and-clicks firmsoperate both in traditional andInternet settings.



Potential Marketing Roles for the Internet

Projecting an

ImageCustomer

Service

Channel

Relations

Purchasing &

Inventory

Management

Information

Gathering &dSharing

Data-Base

Development

Continuous

Interactivity and

Feedback

Advertising& Sales

Promotion

Selling

Multichannel

Marketing



Benefits of E-Marketing

Communicability

Time

Rapid, globalinteractivities andcommunications

Information

Global

possibilities

Delivery

Costefficiencies

Values



Developing an Internet Marketing

Strategy

1.

Set

Objectives

2. Identify the

Target

Audience

3.Determine Web

Site Attributes 4.

EstablishInternet-Based

Marketing Mix

5. ImplementInternet

Marketing

Strategy

6. Assess

Internet

Performance and

Modify



Goal Setting

1.

Setting

Objectives

Feedback

Enumerate

Qualitative and

Quantitative

Objectives

Attract New

Customers and

Improve

Customer

Service

Build Loyalty

Among Existing

Customers

Grow Market

Share

ImproveCommunications



Six Types of Internet Consumers

2. Identify the

Target

Audience

Newbie

Shoppers

Reluctant

Shoppers Frugal

Shoppers

Strategic

Shoppers

Enthusiastic

Shoppers

Convenience

Shoppers



Web Site Design Considerations

3.Determine Web

Site Attributes

Web

AddressHome

Page

Site Content

Use of

MultimediaWeb Site

Links

Shopping

Tools

ElectronicData

Interchange

Feedback

Trade-offs


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Internet-Based Marketing-Mix Decisions

4.

Establish

Internet-Based

Marketing Mix

Product

Decisions

Promotion

Decisions

Pricing

Decisions

Distribution

Decisions


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Implementing an Internet Marketing

Strategy

5. Implement

Internet

Marketing

Strategy

Two factors affect the firms ability to

properly enact its strategy:

SecurityChannel

Relationships


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Assessing an Internet Marketing Strategy

6. Assess

InternetPerformance &

Modify

Considering such goals

as image, customer

service, sales, profit,

web traffic, length of

stay, and cost factors


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Measuring Web Site Effectiveness by

Counting Eyeballs

Many new marketing firms have emerged that

evaluate Web sites and also provide

recommendations for improvement.

There is a critical need for developing similar

assessment tools and measurement standards

to evaluate the Web as there are for print,

radio, and other electronic media.


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Quality of Web Sites from Users Perspective

Clarity of sites mission

Download time

Speed of site comprehension

Informational value Ease of navigability

Use of graphics/multimedia

Interactivity

Security

Simplicity of purchasing

Printability of site pages

Creativity


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Converting Information to Knowledge

Information

Technology

Knowledge

The Internet is a bridge to the new economy.


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The Internets Challenges and Prospects

Corporate culture may resist change.

The Internet may not capitalize oncompanys core competencies.

Role for E-marketing may not be clear.

Web users may be demanding.

Personal touch important tocustomers.

Channel partners may be alienated.

Online and offline systems may be hardto integrate.

It may be difficult to assess anddelegate functions.

Investment costs and expenses may bedifficult to predict.

Constantly

evolvingtechnologies

create change.


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Other Corporate Challenges in Using

the Internet

Consumer resistance to online

shopping

Customer service a prime

consideration in current

economy

System breakdowns and

technology obstacles

Speed of site performance

Internet connection costs

Legal issues

Privacy issues

Clutter and spam


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Ethical Issues in E-Marketing

Protecting intellectualproperty, privacy issues,and developing various

standards for ethicalconduct on the Internet areprime concerns for thefuture.


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C i ht At i D P bli hi 2007

Chapter Summary

This chapter demonstrates why the Internet is a

valuable marketing tool.

It explores the multifaceted potential marketing

roles for the Internet. It describes how to develop an Internet marketing

strategy.

It illustrates how the Internet is being utilized to

enhance marketing strategies. It considers the challenges of using the Internet in

marketing and forecasts the future of E-marketing.

Marketing by Evan Berman Chp 07

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