Internet Marketing

An Introduction

Copyright, Angela D’Auria Stanton, Ph.D., 2008-09. All Rights Reserved

Usage of the Internet• 1.4 billion users worldwide (almost 22% of the world’s

population)

Source: http://www.internetworldstats.com/stats.htm

Top Web Sites

• http://www.alexa.com/site/ds/top_sites?ts_mode=global&lang=none

• http://www.quantcast.com/top-sites-1

What do Users in the U.S. do on the Internet?

• http://www.pewinternet.org/trends/Daily_Internet_Activities_7.22.08.htm

What are the Demographics of U.S. Internet Users?

• http://www.pewinternet.org/trends/User_Demo_7.22.08.htm

Active Digital Media Universe: People that have used a computer capable of connecting to the Internet AND visited a Web site and/or launched any computer file tracked by Nielsen//NetRatings' applications metering module.

Current Digital Media Universe Estimate: People over the age of 2 that have access to the Internet from a personal computer at home; includes active and non-active persons in the household.

Source: http://www.netratings.com/press.jsp?section=pr_netv&nav=3

Global Index ChartMonth of October 2008, Panel Type: Home

October 2008

September 2008

% Growth

Sessions/Visits per Person per Month 37 35 +5.43

Domains Visited per Person per Month 72 68 +5.77

Web Pages per Person per Month 1,600 1,489 +7.41

Page Views per Surfing Session 42 42 +0.89

PC Time Spent per Month 38:07:33 33:21:30 +14.29

Time Spent During Surfing Session 1:02:36 0:57:45 +8.40

Duration of a Web Page Viewed 0:00:50 0:00:47 +6.08

Active Digital Media Universe 366,579,976 369,939,966 -0.91

Current Digital Media Universe Estimate 544,618,961 555,535,420 -1.97

The Digital Divide• The digital divide refers to the gap between

people with effective access to computers and the internet and those without access. Stages include:– The Economic Divide – some people can’t afford a

computer and/or internet access.– The Usability Divide – technology is too difficult

for many to understand (e.g. low literacy, seniors, etc.)

– The Empowerment Divide – not making full use of the opportunities technology affords

Where Are We?

Technology Peak of Trough of Slope of Plateau of Trigger Inflated Disillusion Enlightenment Profitability Expectation

1990-1996 1999 2000 2001 2002 2003 2004 2005 2006 Equity times Debt Times Positive Cash Flow

Visibility

Dot-com peak

U.S. Recession

E-Business becomes “just

business”

Source: Gartner Research

The Evolution of the Web

• Web 1.0: The movement that took place in the early days of commercialization of the WWW. Back then the primary use of the Internet was taking print media and posting it online.– This movement is still going on and will probably

never stop. This is because as new data becomes available it needs to be made available online.

The Evolution of the Web

• Web 2.0: After all this data was posted online with the Web 1.0 movement, the online community began to look for ways to share all of this data. The main question that drove this movement, “How can I take this data and share it with other people?”– Uses the concept of social networking to create a

community– Types of popular applications include blogs,

sharing sites (e.g. YouTube, Flickr), wikis, social networking sites, etc.

The Evolution of the Web

• Web 2.0 (continued)– Really Simple Syndication (RSS) is a primary

distribution method of Web 2.0 technologies• It is a way for people to receive information from blogs,

news sites, podcasts, etc. at self-selected intervals eliminating the need to visit sites individually.

• By sending the info wherever and whenever you want it, RSS is the ultimate push-marketing tool.

• Web 2.0: The Machine is Using Us (YouTube video)

The Evolution of the Web

• Web 3.0: Still to come but visualized to be the integration of data and applying it in innovative ways– Imagine taking things from Amazon, integrating it

with data from Google and then building a site that would define your shopping experience based on a combination of Google Trends and New Products.

Using Web 2.0 Technologies at RU• Check out RU’s Admissions site at:

http://admissions.asp.radford.edu/default.aspx. The site, in its present form, is only employing web 1.0 technology.

• Get into some small groups and discuss some ways in which RU could employ some web 2.0 technologies for Admissions (a directory of various web 2.0 technologies can be found at http://www.listio.com)? What would be the advantages of your suggestions? What are some potential problems? Please type up your suggested approaches (along with the advantages and problems you discussed for each) in a Powerpoint and e-mail this to me at astanton@radford.edu. Each group will be asked to present their ideas to the class.

Strategic Drivers of the Internet Economy*

1. Information provides the greatest value added2. Distance no longer matters3. Speed is of the essence4. People are the key assets5. Growth rates are accelerated by the network6. Market power is determined by skill in managing information7. Marketplace power has shifted in the direction of customers8. The Internet makes it possible to deal with customers on a

one-to-one basis9. The era of instant gratification is here

* Internet Marketing: Integrating Online and Offline Strategies, Mary Lou Roberts, 2003, p. 15.

How Marketing has changed due to Technology

• Ubiquity (any time/any place) – the marketplace has been replaced by “marketspace” is removed from temporal and geographic location

• Global Reach• Universal Standards – costs of delivering marketing

messages and receiving user feedback have been reduced because of shared, global Internet standards

• Richness – video, audio and text can be integrated into a single marketing message and consuming experience

How Marketing has changed due to Technology

• Interactivity – consumers can be engaged in dialog, dynamically adjusting the experience to the consumer, and making the consumer a co-produce of goods/services sold

• Information Density – Highly detailed information on consumers’ real-time behavior can be gathered, analyzed and used for marketing purposes

• Personalization/Customization – Products and services can be differentiated to individuals

• Social Technology – user-genereated content, social networking sites and blogs have created new online audiences where the content is provided by users

What do you think about targeted advertising?

• Read the following article: http://www.washingtonpost.com/wp-dyn/content/article/2008/09/02/AR2008090202956.html

• Items for discussion:

– What do you think about using information you provided for targeted ads?

– Look at your Facebook and/or MySpace page. What ads are you seeing? Why do you think these ads were selected? Are they relevant? Why or why not?

eBusiness vs eCommerce vs eMarketing

• eBusiness: The process of using Web technology to help businesses streamline processes, improve productivity and increase efficiencies. Enables companies to easily communicate with partners, vendors and customers, connect back-end data systems and transact commerce in a secure manner.

• eCommerce: Any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods or services.

• eMarketing: The process of facilitating the exchange of products (goods, services, ideas, experiences, people, places, properties, organizations, information, ideas) via computer-mediated networks and related digital technologies in conjunction with traditional communications to satisfy individual and organizational goals.

eMarketing

eCommerce

eBusiness

Internet Marketing is Not New

Traditional Marketing Internet Marketing

Broadcast Advertising Banner Ads

Direct Mail eMail

Press Releases Website pressroom

Promotions Online Events

Networking Chat Rooms/Listservs

Word of Mouth Viral Marketing

Comparison of ActivitiesInternet Marketing• Environmental scanning, needs

assessment, and market research• Segmenting, targeting, and

positioning• Online branding• Developing the Marketing Mix

– Product strategies (e.g., branding)

– Pricing strategies– Distribution strategies (e.g.,

e-tailing)– Promotion (Adv., Personal

Selling, Sales Promotion, etc.)

• Web Design? Yes and No

E-Commerce• Security Issues• Electronic Payment Systems• Firewalls• Purchasing and Support Activities (order

fulfillment, front-end and back-end systems)

• Internet Marketing• Legal Issues• Supply Chain Management• Tax Issues• Web server and software tools• Web hardware, networking • E-Commerce Strategy Development

7 Top Online Marketing Trends for 2009• Increase customer retention efforts.• Create more attractive content (especially video) because it cost-effectively engages consumers at

many touch points during the purchase cycle, leverages internal resources, and aids search optimization.

• Develop more targeted and relevant communications to be disseminated across a variety of devices, including advertising, e-mail, smartphones, text messages, and instant messages.

• Better leverage communities. While social communities expanded and new niche sites evolved in 2008, companies must think more broadly about their prospects, customers, and other influencers this year. This means evolving beyond the engagement phase of dealing with customers to show them the love.

• Increase analytic sophistication to drive business decisions in a resource-constrained environment.

• Enhance search marketing advertising despite increased cost, because search engines are still the first place online users turn to find information.

• Continue to integrate distribution channels despite the internal corporate challenges and higher costs. Multichannel merchants will face increased complexity and thinner margins unless they become more efficient.

Source: http://www.clickz.com/3632306