introduction to internet marketing
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1st chapter if internet marketingTRANSCRIPT
Chapter 1: Introduction to Internet Marketing
Definition and Scope of Internet Marketing
Seven-Stage Cycle of Internet Marketing
Four Key Relationship Stages and the Marketspace Matrix
Guidelines for Internet Marketing Success
Overview of the Book
Conclusion
Chapter 1: Introduction to Internet Marketing
Definition and Scope of Internet Marketing
Seven-Stage Cycle of Internet Marketing
Four Key Relationship Stages and the Marketspace Matrix
Guidelines for Internet Marketing Success
Overview of the Book
Conclusion
Definition of Internet Marketing
Internet Marketing is the process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products, and services that satisfy goals of both parties.
Cell 4Cell 4 Cell 2Cell 2
Cell 3Cell 3 Cell 1Cell 1
Lo
cati
on
of
Re
ven
ue
Str
ea
m
Bric
ks-a
nd-
Mor
tar
Onl
i ne
Marketing Resource Allocation
Offline Online
Inte
rnet
Mar
ketin
g Impac
t
Exhibit 1.1: Assessing the Impact of Internet Marketing
Chapter 1: Introduction to Internet Marketing
Definition and Scope of Internet Marketing
Seven-Stage Cycle of Internet Marketing
Four Key Relationship Stages and the Marketspace Matrix
Guidelines for Internet Marketing Success
Overview of the Book
Conclusion
Exhibit 1.2: The Seven-Stage Cycle of Internet Marketing
Step 2
Formulating the Marketing Strategy
Step 3
Designing the Customer
Experience
Step 4
Crafting the Customer Interface
Step 5
Designing the Marketing Program
Step 6
Leveraging Customer Information Through
Technology
Step 7
Evaluating the
Marketing Program
Step 1
Framing the Market
Opportunity
7 stage cycle of internet marketing
Stage 1: Opportunity assessment – unmet customer needs, target market.
Stage 2: Formulating the marketing strategy: Offline and online marketing activities
Stage 3: Designing the customer experience: Functionality, Intimacy and Evangelism
Stage 4: Crafting the customer interface: marketspace: (screen to face interaction) Internet enabled appliance.
Stage 5: Designing the marketing program: Customer relationships: Awareness, Exploration, Commitment, Dissolution. Internet Marketing Mix.
Continued……
Stage 6: Leveraging Customer Information Through Technology: Marketing Research, Database marketing, CRM
Stage 7: Evaluating the marketing program: Evaluation of the overall internet marketing program.
Exhibit 1.3: Framework for Market Opportunity
Seed Opportunity in Existing New Value SystemSeed Opportunity in Existing New Value System
Identify Unmet and Underserved Need(s)Identify Unmet and Underserved Need(s)
Identify Target Segment(s)Identify Target Segment(s)
Declare Company’s Resource-Based Opportunity for Advantage
Declare Company’s Resource-Based Opportunity for Advantage
Assess Competitive, Technological, and Financial Opportunity Attractiveness
Assess Competitive, Technological, and Financial Opportunity Attractiveness
Make “Go / No-Go” AssessmentMake “Go / No-Go” Assessment
Framework for Market OpportunityMicrosoft CarPoint Example
Leverage the Internet to Improve the Consumer Car-Buying Process
Leverage the Internet to Improve the Consumer Car-Buying Process
Car Buyers Are Dissatisfied With Current Retail Car-Buying Process
Car Buyers Are Dissatisfied With Current Retail Car-Buying Process
Shoppers Who Feel Intimidated by Sales People and Look for More Efficient Way Shoppers Who Feel Intimidated by Sales People and Look for More Efficient Way
Microsoft’s Software and Free Placement on All Its Websites
Microsoft’s Software and Free Placement on All Its Websites
How Big Is the Online Car-Buying Market? Who Are CarPoint’s Main Competitors?
How Big Is the Online Car-Buying Market? Who Are CarPoint’s Main Competitors?
Make “Go / No-Go” AssessmentMake “Go / No-Go” Assessment
• MSN CarPoint identified an opportunity to leverage the Internet to deliver customer value in the car industry
• The retail car-buying process was frustrating and inefficient:
• Little information available to the consumer• Bargaining with salesperson viewed as an hassle• Long process overall
• MSN CarPoint selected two primary target segments for its service:
• “The intimidated by the process”• “The information seekers”
• MSN CarPoint could leverage Microsoft’s expertise in software development, its brand name and its multitude of online properties
• Competition was getting fierce with more and more online car services entering the market…• But the financial opportunity was large: 66% of new car buyers were estimated to use online services in 2000
• In 1996, the first version of CarPoint was shipped• By 1998, CarPoint was driving $5 million in car sales a day
Exhibit 1.4: Corporate, Business-Unit and Marketing Strategy
Corporate StrategyCorporate Strategy
Business Unit StrategyBusiness Unit Strategy
AmazonAmazon
Tools and HardwareTools and Hardware
Integrated Marketing Strategy for Tools and
Hardware Unit
Integrated Marketing Strategy for Tools and
Hardware Unit
Linkages Example
Integrated Marketing Strategy for Unit
Integrated Marketing Strategy for Unit
Internet MarketingInternet
MarketingTraditional Marketing
Traditional Marketing
Online Marketing Mix
Online Marketing Mix
Offline Marketing Mix
Offline Marketing Mix
Chapter 1: Introduction to Internet Marketing
Definition and Scope of Internet Marketing
Seven-Stage Cycle of Internet Marketing
Four Key Relationship Stages and the Marketspace Matrix
Guidelines for Internet Marketing Success
Overview of the Book
Conclusion
AwarenessAwareness Exploration /Expansion
Exploration /Expansion CommitmentCommitment DissolutionDissolution
Four Key Stages of Customer Relationship
Exhibit 1.5: The Four Key Stages of Customer Relationship
Exhibit 1.6: Four Key Stages of Customer Relationship by Level of Intensity
Le
vel o
f In
ten
sit
y
Stages of Customer Relationships
Awareness Exploration Commitment Dissolution
IntensityIntensity
Exhibit 1.7: Internet Marketing Mix
Branding
Product Pricing Communication Community Distribution
Exhibit 1.8: Impact of the 2Is on the Internet Marketing Mix
Branding
Product Pricing
Individual
Communication DistributionCommunity
Interactivity
Exhibit 1.9: The Marketspace Matrix
Relationship Stages Awareness Exploration Commitment Dissolution
Product
Price
Communication
Community
Distribution
Ca
teg
ori
es
of
Lev
ers
BrandingBranding can also
accentuate (or lessen) the impact of the levers
in each cell
Branding can also accentuate (or lessen) the impact of the levers
in each cell
The 2Is should influence the design of each cell
in the matrix
The 2Is should influence the design of each cell
in the matrix
Chapter 1: Introduction to Internet Marketing
Definition and Scope of Internet Marketing
Seven-Stage Cycle of Internet Marketing
Four Key Relationship Stages and the Marketspace Matrix
Guidelines for Internet Marketing Success
Overview of the Book
Conclusion
Critical Success Factors for Internet Marketing Executives
Customer Advocacy and InsightCustomer Advocacy and Insight
IntegrationIntegration
Balanced ThinkingBalanced Thinking
Passion and Entrepreneurial Spirit
Passion and Entrepreneurial Spirit
Willingness to Accept Risk and Ambiguity
Willingness to Accept Risk and Ambiguity
The willingness to understand customer needs and provide added value to each customer interaction
The ability to manage marketing campaigns in a more uncertain, dynamic environment, with a new set of tools that often have few records of successes, failures or best-practices
The ability to have a holistic view of the customer and the enterprise in order to create a uniquely advantaged strategic plan
Being able to understand the dynamic tension between one-to-one marketing and mass marketing and being able to strike a strategic balance between them
The willingness to change the status quo, take chances and use “bleeding edge” tools to lead teams to success
Exhibit 1.10: The New Rules of Marketing for the Global Digital World
The New Rules1. Target segments of one, and create virtual communities
2. Design for customer-led positioning
3. Expand the role of branding in the global portfolio
4. Leverage consumers as coproducers through customization
5. Use creative pricing in the Priceline.com world
6. Create anytime/anyplace distribution and integrated supply chains
7. Redesign advertising as interactive and integrated marketing, communication, education and entertainment
8. Reinvent marketing research and modeling as knowledge creation and dissemination
9. Use adaptive experimentation
10. Redesign the strategy process and supporting organizational architecture
Source: Wind, Jerry and Vijay Mahajan. Digital Marketing. New York: John Wiley and Sons, p.8.
Point-Counterpoint: New Rules or Old Rules of Marketing
New Rules Old Rules
Several basic conceptual and process changes occur in online marketing
One such change is the increased ability to deliver on the promise of one-to-one marketing
There is also a fundamental shift to a more consumer-driven and controlled world — for example, a shift towards pull-marketing and the use of more “pull” levers, such as online community
Differences in the online marketing world are overstated
Segmentation is still at the core of marketing — “clusters” of consumers will emerge that share behavior
From the supply side, it is most efficient to aggregate these consumers to reduce costs
Successful marketing programs include mixing different marketing levers, both new and old: the “master-mixer” concept still remains
Point-Counterpoint
Chapter 1: Introduction to Internet Marketing
Definition and Scope of Internet Marketing
Seven-Stage Cycle of Internet Marketing
Four Key Relationship Stages and the Marketspace Matrix
Guidelines for Internet Marketing Success
Overview of the Book
Conclusion
4. Crafting the Customer Interface
4. Crafting the Customer Interface
1. Framing the Market
Opportunity
1. Framing the Market
Opportunity
2. Formulating the Market Strategy
2. Formulating the Market Strategy
3. Designing the Customer
Experience
3. Designing the Customer
Experience
Exhibit 1.11: Overview of the Chapters
5. Designing the Marketing Program
5. Designing the Marketing Program
6. Leveraging Customer
Information through
Technology
6. Leveraging Customer
Information through
Technology
7. Evaluating the Marketing
Program
7. Evaluating the Marketing
Program
Customer Relationships Product Pricing Communication Community Distribution Branding Designing the
Marketspace Matrix Illustration: Marketing
Campaign for The Lord of the Rings: The Fellowship of the Ring
Chapter 1: Introduction to Internet Marketing
Definition and Scope of Internet Marketing
Seven-Stage Cycle of Internet Marketing
Four Key Relationship Stages and the Marketspace Matrix
Guidelines for Internet Marketing Success
Overview of the Book
Conclusion
Traditional marketing methods are still highly relevant in the networked economy, though firms must now consider a host of new and innovative marketing methods available online (e.g., dynamic pricing, online community)
In contrast to the one-way mass promotion that characterizes modern marketing, Internet marketing enables firms to engage the individual in personalized dialogues
Individualization and Interactivity are two forces that make online marketing different
Marketing, and the relationships it creates, should be considered in the context of particular processes and stages
Introduction to Internet Marketing — Conclusion