Internet properties and marketing implications MARK 430 Advanced

Internet properties and marketing implications MARK 430 Advanced Online Marketing Week 1

After this class you will understand: § What online or e. Marketing 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 e. Commerce § 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 / emarketing? § 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 / emarketing? § 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

e. Marketing 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 e. Marketing 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. Þ 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 Ti. Vo 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 Needs What 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 Needs e-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 longterm 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