It shows the basics of the internet marketing including the different metrics involved in the digital marketing. It includes verticals like
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Internet Marketing
Chapter 14
Prepared by
Deborah Baker
Texas Christian University
Chapter 14 Essentials of Marketing 4e
1
Learning Objectives
1. Explain how the Internet affects the
traditional marketing mix
2. Describe how marketers are leveraging the
power of online technology
3. Discuss the legal and privacy issues
affecting Internet-based companies
Chapter 14 Essentials of Marketing 4e
2
Learning Objectives
4. Measure the effectiveness of an online
marketing campaign
5. Discuss the effects of the Internet on
marketing objectives and strategy
Chapter 14 Essentials of Marketing 4e
3
1
Learning Objective
On
OnLine
Line
http://www.scubatoys.com/poolcam/poolcam.asp
http://www.scubatoys.com/poolcam/poolcam.asp
Explain how the
Internet affects the
traditional
marketing mix
Chapter 14 Essentials of Marketing 4e
4
1
Product Strategies on the Web
Progression
Progression of
of
product
product strategies:
strategies:
Commodities
Commodities
Branding
Branding
Chapter 14 Essentials of Marketing 4e
Mass
Mass
customization
customization
5
1
On
OnLine
Line
http://www.despair.com
http://www.despair.com
Branded Commodities
Principle
Principle of
of equivalent
equivalent quality
quality is
is applied
applied to
to
branded
branded products,
products, creating
creating downward
downward
price
price pressure
pressure
Camera
Camera A
Aat
at
Retailer
Retailer A
A
Chapter 14 Essentials of Marketing 4e
Camera
Camera A
Aat
at
Retailer
Retailer B
B
6
1
Place
On
OnLine
Line
http://www.ideavirus.com
http://www.ideavirus.com
Corporate
Corporate Web
Web sites
sites
Resellers’
Resellers’Web
Web sites
sites
Affiliate
Affiliate programs
programs
Clicks
Clicks and
and mortar
mortar
Chapter 14 Essentials of Marketing 4e
7
1
Affiliate Programs
Virtual Intermediaries:
Refer customers to online retailers
Receive a commission on resulting sales
Benefit from the goodwill consumers feel
for the content sites they normally visit
Chapter 14 Essentials of Marketing 4e
8
1
Promotion Challenges
Consumers
Consumers don’t
don’t know
know the
the site
site
Consumers
Consumers don’t
don’t know
know the
the company
company
Converting
Converting browsers
browsers to
to buyers
buyers
Pricing and Consumer Loyalty
75%
75% of
of customers
customers participate
participate in
in aa loyalty
loyalty program
program
Online
Online customer
customer service
service consistently
consistently rated
rated as
as poor
poor
72%
72% say
say customer
customer service
service is
is important
important
41%
41% happy
happy with
with service
service they
they received
received
Profitability
Profitability is
is less
less algorithm
algorithm and
and more
more caring
caring
Chapter 14 Essentials of Marketing 4e
13
Come
Back
Soon!
1
How Technology Changes the 4Ps
Era of:
Product
Place
Promotion
Price
Personal
Commodities
Selling
(pre-1840s)
Retail Store
Store Displays Going Rate
Advertising
(1840s to
1990s)
National
Brands
Malls &
Superstores
National
Advertising
Interactive
Commerce
(1994 and
beyond)
• Branded
Commodities
• Mass
Customization
• Worldwide • InternetMarketplace
based
Web Sites
• Affiliate
• Interactive
Programs
Ads
• Instant
Messaging
Chapter 14 Essentials of Marketing 4e
14
Retail Price
Intelligent
Software
Agents
2
Learning Objective
Describe how
marketers are
leveraging the
power of online
technology
Chapter 14 Essentials of Marketing 4e
15
2
Internet Demographics and Trends
60% of Men
Online:
Online:
By
By Gender
Gender
in
in the
the U.S
U.S..
56% of Women
Chapter 14 Essentials of Marketing 4e
16
2
Internet Demographics and Trends
60% of Whites
Online:
Online:
By
By race
race in
in
the
the U.S.
U.S.
45% of Blacks
54% of Hispanics
Chapter 14 Essentials of Marketing 4e
17
2
Internet Demographics and Trends
23% no high school
Online:
Online:
By
By
education
education
in
in the
the U.S.
U.S.
45% of high school grads
82% of college grads and
post-graduates
Chapter 14 Essentials of Marketing 4e
18
2
The Global Village
Broadens
Broadens and
and enhances
enhances access
access
in
in developing
developing nations
nations
Allows
Allows businesses
businesses to
to “leapfrog”
“leapfrog”
into
into development
development
Levels
Levels playing
playing field
field for
for
disadvantaged
disadvantaged countries
countries
Chapter 14 Essentials of Marketing 4e
19
2
Wireless Access on Rise
Wireless is growing in popularity
Will soon represent over half of all
Internet users worldwide
A particular advantage for developing
nations without suitable infrastructure
Chapter 14 Essentials of Marketing 4e
20
2
Basic Forms of Virtual Business
Business-to-business
B2B
Forms
Forms of
of
Internet
Internet
commerce
commerce
Business-to-Consumer
B2C
Consumer-to-Consumer
C2C
Chapter 14 Essentials of Marketing 4e
21
2
B2B Exchanges
On
OnLine
Line
http://www.globalwinespirits.com
http://www.globalwinespirits.com
http://www.transcore.com
http://www.transcore.com
Online
Online trading
trading floor
floor
Struggling
Struggling to
to survive
survive
Over
Over half
half out
out of
of business
business
since
since 2002
2002
Chapter 14 Essentials of Marketing 4e
22
Maximizing Customer Relationship
Marketing on the Internet
2
Data
Data tracking
tracking
Needed
Needed for
for personalized
personalized
content
content
Using
Using
Cookies
Cookies
Keep
Keep ad
ad content
content fresh
fresh
Controversial
Controversial because
because of
of
privacy
privacy concerns
concerns
Chapter 14 Essentials of Marketing 4e
23
2
Improving Search Engine Results
11 –– Choose
Choose the
the right
right words
words
22 –– Put
Put those
those words
words at
at top
top of
of page
page
33 –– Use
Use meta
meta tags,
tags, like
like bold
bold type
type
44 –– Increase
Increase non-reciprocal
non-reciprocal links
links
55 –– Incorporate
Incorporate graphics
graphics
66 –– Incorporate
Incorporate video/audio
video/audio
77 –– Pay
Pay for
for aa better
better link
link
Chapter 14 Essentials of Marketing 4e
24
3
Learning Objective
Discuss the legal
and privacy issues
affecting Internetbased commerce
Chapter 14 Essentials of Marketing 4e
25
3
Major Issues in Online Privacy
On
OnLine
Line
http://www.fbi.gov/hq/lab/carnivore/carnivore.htm
http://www.fbi.gov/hq/lab/carnivore/carnivore.htm
Cookies
Cookies
Not-so-private
Not-so-private email
email
Spam
Spam
Identity
Identity theft
theft
Conflicting
Conflicting laws
laws
Cyberstalking
Cyberstalking
Chapter 14 Essentials of Marketing 4e
Branded
trust
Branded
trust
26
3
Cookies
Are bits of data mapped
to your hard drive
Cookies:
Enable marketers to
personalize Web sites
Can trace where you’ve
been on the Internet
Are the subject of a
controversial debate
Chapter 14 Essentials of Marketing 4e
27
3
Identity Theft
Stealing
Stealing personal
personal information
information to
to
commit
commit fraud
fraud or
or other
other crimes
crimes
Sharply
Sharply increasing
increasing
In
In 2003,
2003, 27
27 million
million complaints
complaints
filed
filed with
with the
the FTC
FTC
Chapter 14 Essentials of Marketing 4e
28
3
Conflicting Legislation
Not all countries have the same laws
regulating Internet commerce
Marketers (M)
responsible for
every law in every
country
Country 1
M
Country 2
Chapter 14 Essentials of Marketing 4e
Country 3
29
3
Online Predators
Cyberstalking is on the rise.
Caution is declining (e.g., online dating is
increasing)
Affects trust people have for legitimate
marketing efforts
Chapter 14 Essentials of Marketing 4e
30
3
Creating Trust Online
Better Business Bureau
“Reliability Seal”
3rd-party
seals for
creating
trust
ScanAlert
“Hacker Safe”
Verisign
“Secure Seal”
Chapter 14 Essentials of Marketing 4e
31
4
Learning Objective
Measure the
effectiveness of an
online marketing
campaign
Chapter 14 Essentials of Marketing 4e
32
4
Metrics
The server can
tell:
The server can’t
tell:
Who visited
How many times
(hits)
And where (page
views)
Chapter 14 Essentials of Marketing 4e
Recency
Frequency
Monetary value
33
4
Out-of-Date Metrics
Hits
Hits
Page
Page views
views
Click-through
Click-through counts
counts
Chapter 14 Essentials of Marketing 4e
34
4
Stickiness as the New Metric
Duration
Stickiness =
Frequency
Site Reach
Chapter 14 Essentials of Marketing 4e
35
5
Learning Objective
Discuss the effects
of the Internet on
marketing
objectives and
strategy
Chapter 14 Essentials of Marketing 4e
36
5
Porter’s Five Industry Forces
Rivalry among existing competitors
Applying
Five
Forces in
Internet
Environment
Barriers of entry
Threat of substitutes
Bargaining power of suppliers
Bargaining power of buyers
Chapter 14 Essentials of Marketing 4e
37
5
Porter’s Five Industry Forces
Online…
Rivalries
Rivalries are…
are…
…intensified
…intensified
Barriers
Barriers are…
are…
…low
…low
Threat
Threat of
of substitutes
substitutes is…
is…
…high
…high
Bargaining
Bargaining power
power suppliers
suppliers
Bargaining
Bargaining power
power buyers
buyers
1st
1st movers
movers
have
have the
the
advantage
advantage
11stst movers
movers pay
pay the
the costs
costs of
of
nd movers have the
development;
development; 22nd
movers have the
advantage.
advantage.
Behavior
Behavior
changes
changes
quickly
quickly
Old
Old habits
habits die
die hard;
hard; people
people more
more
concerned
concerned about
about getting
getting needs
needs met
met
than
than fractional
fractional costs
costs savings
savings
Non-traditional
Non-traditional
pricing
pricing will
will be
be
aa success
success
People
People perceive
perceive prices
prices posted
posted by
by
sellers
sellers to
to be
be more
more convenient
convenient and
and
fair.
Chapter 14 Essentials of
Marketing 4e
39
fair.