Welcome to Internet Marketing!“The journey is the reward”

BUSIP Program – 31 May 05Fred Pursell

Do you know your Internet marketing trivia?Do you know your Internet marketing trivia?

What is the meaning of ‘I18N?’

Do you know your global marketing trivia?Do you know your global marketing trivia?

What share of the world’s population has

English as its native language?

Top 10 spoken languagesTop 10 spoken languages

Language Native Speakers Population Share

Mandarin Chinese 885 m 14.9%

English 322 m 5.4 %

Spanish 266 m 4.5%

Bengali 189 m 3.2%

Hindi 182 m 3.1%

Portuguese 170 m 2.9%

Russian 170 m 2.9%

Japanese 125 m 2.1%

German 98 m 1.6%

Wu Chinese 77 m 1.3%

Source: National Geographic

Internet marketing learning objectives Internet marketing learning objectives

Explore how the Web is being used to build brands and customer relationships.

Examine online promotional strategies and tactics, what’s working and why or why not.

Evaluate ways to integrate Internet marketing with traditional marketing vehicles.

Marketing planning is critical to success Marketing planning is critical to success

By failing to plan, you’re planning to fail.

The customer is king The customer is king

Marketing is all about understanding the customer.

Content is king? Content is king?

Customer-focused Web content is useful, timely, and

relevant – as defined by the user.

User-centric Web design is king User-centric Web design is king

The promise of the Internet is user control.

Topics for today’s class Topics for today’s class

Revisiting the 4P’s of marketing; trends and lessons in B2C and B2B e-commerce

Incorporating Web-based resources in hybrid and multi-channel marketing systems

Promotional strategies and tactics, and best practices for Internet marketing

Amazon.com case study discussion

Four P’s of marketingFour P’s of marketing

1)Product

2)Promotion

3)Place

4)Pricing

INFORMATION EVALUATION PURCHASE DELIVERY SUPPORT

DEMAND PRE-SALES SALES DELIVERY SUPPORT

Customer View

Vendor View

Typical sales cycle phasesTypical sales cycle phases

Market development and customer supportMarket development and customer support

DEMANDCREATION

SALESDEVELOPMENT

PRODUCTPURCHASE

DELIVERYINSTALLATION

ONGOINGSERVICES

advertising

specials

launches

partnering

articles

solutions

e-tools

education

specifications

ideas

configuration

ordering

cross selling

confirmation

set-up

customization

techniques

integration

customer care

updates

support

news

Sales Cycle Phases and Activites

images

tips

payment

help FAQs

maintenance

Managing hybrid marketing systems Managing hybrid marketing systems

Hybrid marketing = using the most effective combination of internal and external resources to perform activities across the sales cycle.

Harvard Business ReviewNov-Dec, 1990

Resources engaged in promotional activitiesResources engaged in promotional activities

Internal Resources Marcoms PR Advertising Programs Direct Mail Groups Telesales Direct Sales Web presence Support Centers Financing Consultants System Engineers

External Resources Distributors VARs Systems Integrators Corporate Resellers Dealers Retailers Mass Merchants Service Providers ISVs OEMs

Promotional vehicles Promotional vehicles

Advertising

Personal selling

Public relations

Sales promotion

Direct marketing

Trade shows

Promotional mix strategiesPromotional mix strategies

Pull Strategy = spending focused on advertising and consumer spending to build up and pull consumer demand.

Push Strategy = spending focused on using the sales force and trade promotion to push the product through the channels.

INFO EVAL PURCHASE DELIVERY SUPPORT

Public RelationsAdvertisingDirect MailTelesalesDirect SalesInternet

DistributorsVARs/IntegratorsDealersRetailISVsOEMs

Support Centers

Hybrid marketing exampleHybrid marketing example

Internet promotional tactics Internet promotional tactics

Online advertising techniques; banner ads, pop-ups, animation, rich media, content

e-marketing programs; email, e-newsletters, Webcasts, communities, search engines

e-partnering programs; strategies and tactics for leveraging online business partners

Integrating online promotional techniques with traditional marketing activities

Managing promotionManaging promotion

Planning Implementation Control

Identify target audience Specify objectives Define performance metrics Establish the budget Select promotional tactics Design promotion Schedule promotion

Pre-test promotion Execute promotion Audit effectiveness Measure results Evaluate ROI

Post-test the promotion Make needed changes Manage processes Communicate results

Determinants – promotional mix strategy/tacticsDeterminants – promotional mix strategy/tactics

Target audience

Product life cycle

Product characteristics

Phase of the sales cycle

Channel strategy

Forward integration to the customer Forward integration to the customer

Disintermediation = a trend involving product and

service producers by-passing intermediaries and

going directly to final buyers, or engaging with new

and emerging types of channel intermediaries that

are displacing traditional players.

Why people use the InternetWhy people use the Internet

Objectives Benefits Value

Content Convenience Information

Collaboration Ease of use Resources

Commerce Efficiency Tools

Web-user Needs

How people use the InternetHow people use the Internet

Task-focusedproduct searches

Enrichment-basedlearning searches

commerce content

community

Inte

ract

ion-

dire

cted

reso

urce

sea

rche

s

LIFESTYLE

Web-user Behavior

Keys to online marketingKeys to online marketing

Permission-based marketing

Personalization

Purchasing process automation

User-centered design

Value-added content

Affinity programs

Web metrics

Integrated marketing communications

Amazon case study discussion Amazon case study discussion

1)How is Amazon using technology to innovate and deliver new value to consumers?

2)What can you conclude about Amazon’s target audience and market segmentation?

3)What sales processes are automated through online information, resources, and tools?

It’s great having you in my class.

Thank you everyone!