The Search for Opportunities in the Internet Using Internet Marketing Mechanisms

Tomasz Frontczak, M.Sc.Stefan Trzcielinski, Ph. D., D.Sc.

Institute of Management Engineering

Poznan University of Technology, Poznan

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Agenda

• Internet

• The Search – Database of Intentions

• The Long Tail

• Opportunity Oriented Marketing in the Internet

• Mechanisms of Internet Marketing

• Internet Marketing Platforms

• Case Studies

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Internet

The latest research (2007) conducted by Piper Jaffray & Co shows that the internet becomes mass-medium

What Do We Do Online?

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We... search

Search is the second most commonly used application on the Web with 550 million searches daily in the United States.

In Poland Google search engine took first place in the rankings of visiting all web services.

... we search to find!

... reverse broadcast network

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We search and build database of intentions

Search engines, gathering data about every query and click, build a huge database.

“Taken together, this information represents a real-time history of post – Web culture - and massive clickstream database of desires, needs, wants, and preferences that can be discovered, archived, tracked and exploited for all sorts of ends” (Battelle J., 2005)

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Database of intentions – source of opportunity

There are unique intentions described by users. Some of them are needs which become demand on products or services. Unique needs have existed up to now but only the internet era made their description and their satisfaction possibile.

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Database of intentions – source of opportunity

In the past, unique need was not an opportunity for an entrepreneu. Why? There was not any possibility of its identification or small scale. The internet removed these obstacles. Unique intentions create so called long tail which is a band of opportunities for the enterprise.

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The Long Tail

Chris Anderson, the editor of Wired, introduced the expression “the long tail” into the business dictionary

It works where there is lack of regularities based on Pareto

How to make business?

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The Long Tail

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The Long Tail

Finite shelf space, broadcast channels, and column inches have been replaced by infinite product supply and infinite findability

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Supply – internet - demand

intentions

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Supply – internet - demand

Opportunity Oriented Marketing in the Internet

• based on database of intentions

• Google/Yahoo/MSN created platforms of the internet marketing, which operate on the global scale. Essential intermediary element between an entrepreneur and a customer in the internet communication.

• they allow demand to meet supply.

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Mechanisms of Internet Marketing

Mechanisms of marketing consist of:

• platforms of the internet marketing

• methods of ads targeting

• the payment model for ads

• ads forms

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Internet Marketing Platforms 1/2

The main features characterizing modern advertising-platforms are the following:

• the automated service available from a standard internet browser,

• the global range,

• the possibility of the keyword or service selection where the ads are to be displayed, the creation of the advertising-transmission and the immediate broadcasted (within max few minutes). Such a feature allows after opportunity recognition and immediate reaction.

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Internet Marketing Platforms 2/2

• the data access, in time close to the real time (with smaller than 3 h delay for Google Adwords), concerning ads costs and ads effectiveness,

• the possibility of continuous costs modification and adapting itself to changes,

• the possibility of easy testing, which ads or method better affects the receiver (simultaneous advertising and conducting research on the ads effectiveness).

Examples of tools

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Keyword Tools

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Trends

The sample is... everyone

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Analytics Tools

2 Case Studies

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The Tail Is Bigger Than Head

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New Service Added to the Offer

• keyword research

• traffic

• analyze how internet users reach website

• niche need – opportunity

• cooperation with other company

• new offer

• demand (opportunity) seek supply

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Instead of conclusion

The influence of internet marketing mechanisms on the agility of enterprise

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tomasz@epokay.net