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• 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 managemen[r]

Internet Marketing Concepts

Week 2

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

M

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 $53,000

Web reference: KPMG (www.kpmg.co.uk), GVU (www.gvu.gatech.edu/user_surveys)

• Business bods – general business users in management roles

• Home users – members or families looking for education or purchases

Internet and Marketing Mix

• Quality• Image• Branding• Features• Variants

• Support• Customer

service• Use

occasion• Availability• Warranties

Using the Internet to vary the marketing mix

• Positioning• List

• Discounts• Credit• Payment

methods• Free or

added elements

• Marketing communications

• Personal promotion• Sales

• Branding• Direct

• Customer focus• Business-

led• IT-

supported• Design

features• Research

and

• Individuals on

marketing activities• Individuals

on customer contact• Recruitment• Culture/

• Training and skills

• tion

• Trade channels• Sales

support• Channel

number• Segmented

channels

The buying Process on the Internet

Stages in

buying process Communicationsobjectives

Internet marketing techniques

1 Unaware2 Aware of product need, develop specification3 Suppliers search

4 Evaluate and select

5 Purchase6 Post-purchase

Generate awareness

Lead generation(from range of customers)

Assist purchasedecision

Facilitate purchasePosition Features, benefits and brands

Banner advertising,PR, links

Web site content(Plus search support)

Search engines,IntermediariesWeb site content,IntermediariesWeb site content

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