MARKETING ON THE INTERNET The Internet includes a

HISTORY OF THE INTERNET • Vannevar Bush, VP of MIT -- visionary; appointed by

HISTORY OF THE INTERNET(2) • NSFnet (National Science Foundation) • 1989: Time Bernes-Lee of

REQUIREMENTS FOR GROWTH OF THE INTERNET • Electronic Commerce – businesses have to develop

IMPROVING BUSINESS PRACTICES USINGTHE INTERNET • REDUCED COSTS – Fed. Ex>>customer service costs –

IMPROVING BUSINESS PRACTICES USINGTHE INTERNET (2) • INVENTORY REDUCTION – implementation of Just-in-Time delivery

TYPES OF INT. SITES (2) • Selling sites – Amazon. com; L. L. Bean>>to

DRAWBACKS OF INTERNET MARKETING • Limited target audience – around 73 mill. users in

MARKETING INSIGHTS ON THE INTERNET • Selling on the web is interactive • Promotion

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MARKETING ON THE INTERNET • The Internet includes a number of data networks set-up by companies and organizations, the World Wide Web and email, plus a multitude of proprietary networks that are gravitating to the web » Lindgren 2000

HISTORY OF THE INTERNET • Vannevar Bush, VP of MIT -- visionary; appointed by Franklin Roosevelt • Ted Nelson (1965): XANADU >had theoretical underpinnings of hypertext • US Dept. of Defense: ARPANET (Advanced Research Projects Agency Network)>>used the TCP/IP (Transmission Control Protocol/Internet Protocol)

HISTORY OF THE INTERNET(2) • NSFnet (National Science Foundation) • 1989: Time Bernes-Lee of CERN (European Particle Physics Lab)>> – HTML(Hyper. Text Markup Language) – URL (Uniform Resource Locator) – HTTP (Hypertext Transport Protocol) • >>important elements of todays internet

REQUIREMENTS FOR GROWTH OF THE INTERNET • Electronic Commerce – businesses have to develop electronic commerce intranets and extranets that connect to the internet • Network Server Growth – Internet hosts or Internet Service Providers (ISP): 1000 in 1990>>>90 million in Jan, 1999 • Sufficient number of consumers must have access to the internet

IMPROVING BUSINESS PRACTICES USINGTHE INTERNET • REDUCED COSTS – Fed. Ex>>customer service costs – CISCO>>up to date information on products; for frontline employees and customers – GE>>analysis of the supply chain – Online data versus printed information (especially important for direct marketers) – Market expansion is much easier, faster, and less expensive

IMPROVING BUSINESS PRACTICES USINGTHE INTERNET (2) • INVENTORY REDUCTION – implementation of Just-in-Time delivery systems>>Amazon. com • IMPROVED CUSTOMER SERVICE • Fed. Ex; CISCO; Wells Fargo Bank • MARKET/PRODUCT DEVELOPMENT OPPORTUNITIES – 24 hours; global reach; small or large company

TYPES OF INTERNET SITES • Company/Brand Sites – info. about co. and its brands; history, mission, financial statements; how to use products; stock quotes • Service Sites – to provide customer service interface; to reduce customer service costs – Banks, Fed. Ex, UPS

TYPES OF INT. SITES (2) • Selling sites – Amazon. com; L. L. Bean>>to actually sell – promotional sites – Daimler. Chrysler Site>>to move potential buyer closer to purchase • Information sites – revenue through subscription (WSJ); Advertising (search engines like Yahoo); or to express presence (CNNSI, New York Times)

BENEFITS OF INTERNET MARKETING • Increase presence and brand equity • Develop prospective customer into customer>> move toward purchase; internet is pull oriented, not push oriented • Improve customer service • Information transfer>>easier to send and collect information • Supports direct marketing

DRAWBACKS OF INTERNET MARKETING • Limited target audience – around 73 mill. users in the US (1999) – what about others? • Resistance to change – concern about Internet security – need more consumer education, warranties and other security measures

MARKETING INSIGHTS ON THE INTERNET • Selling on the web is interactive • Promotion on the web is pull-oriented • Exchange of information is key – two way flow • Sites must do more than just sell – need assessment, information, assistance, etc. • Size and location are no longer obstacles to success