06 E-marketing & Internet

woebegoneidealInternet and Web Development

Nov 18, 2013 (3 years and 8 months ago)

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Electronic
Marketing

&


Internet Marketing

1

Key Terms


E
-
commerce:


B2B (business to business)


B2C (business to consumer)


C2B (consumer to business)


C2C (consumer to consumer)


Intranet


Marketing Web site



2

Key Terms



Corporate Web site


Customer database


Data warehouse


Direct
-
mail marketing



Direct marketing


Disintermediation



E
-
business


E
-
commerce


E
-
marketing



Extranet


Integrated direct
marketing


Internet

3

4

Marketing
Communications and

the Internet

“Computers in the future may weigh no
more than 1.5 tons.”



-

Popular Mechanics, 1949


5

Marketing Communications and

the Internet


It c
an be accessed from almost anywhere in
the world


It is the s
implest form of international market
entry available

6



The firm cannot avoid creating interest in its
offerings outside its local or national market













Christian
Grönroos


Chapter Objectives


Describe the relationship between
Internet marketing, database
marketing, and direct marketing



Evaluate a company’s
or destination
Web site and comment on its
marketing potential


7

Chapter Objectives


Describe how to set up an
effective
database



Discuss the growth of
e
-
mail marketing



Understand how databases can be
used to develop direct marketing
campaigns


8

Major Forces Shaping

the Internet Age


Digitalization and Connectivity


The Internet Explosion


New Types of
Intermediaries


Customization

9

Digitalization and Connectivity


Digitalization consists of converting
text, data,
sound, and image

into a stream of bits that can
be dispatched at incredible speeds from one
location to another



Connectivity involves building networks and
expresses the fact that much of the world’s
business is carried over networks connecting
people and companies


10

Types of Networks


Intranets

connect
people

within a
company



Extranets

connect a company with
its
suppliers and customers



The Internet

connect users to an
amazingly large “
information
superhighway



11

The Internet Explosion


Useful as a sales outlet and it provides a
medium for communication between a
company and its customers


The number of Web surfers worldwide has
reached
2,7

billion
(2013)
and is expected
to approach
3
.5 billion
by 20
15.


It was only
1.04

billion in 2005.

12

New Types of Intermediaries


With the birth of dot
-
com sites such
as
Booking.com, tripsta.com,
tripadviser.com,
Expedia.com,
Priceline.com, and Travelocity.com
,

the hospitality
% tourism
industry has
had to change how they do business

13

Customization


Technology has been useful in
assisting companies in
understanding
their customers
and
potential
customers
on an individual level and
developing marketing to
their specific
needs &
wants.

14

E
-
Business, E
-
Commerce

& E
-
Marketing


E
-
business

involves the use of electronic
platforms to conduct a company‘s
or
organisations’
business



E
-
commerce

involves buying and selling
processes supported by
electronic means
,
primarily the Internet



E
-
marketing

is company efforts to
communicate about, promote, and sell
products and other services over the Intranet


15

E
-
Commerce

E
-
commerce can be divided into:


E
-
tailing or "virtual storefronts" on websites with online catalogs,
sometimes gathered into a "virtual mall"


Buying or Selling on various websites


The gathering and use of demographic data through Web contacts
and social media


Electronic Data Interchange (EDI), the business
-
to
-
business
exchange of data


E
-
mail and fax and their use as media for reaching prospective
and established customers (for example, with newsletters)


Business
-
to
-
business buying and selling


The security of business transactions


16

Benefits to Buyers


Convenient


Easy and private


Greater product access and
selection


Offers comparative information


Immediate and interactive

17

Benefits to Sellers


Builds customer relationships


Reduces costs


Quick and efficient


Reduces communication costs

18

E
-
Commerce Domains


B2C
(business to consumer)


B2B
(business to business)


C2B
(consumer to business)


C2C
(consumer to consumer)

19

Types of Web Sites


Corporate Web Sites
are designed to
build customer goodwill and to
supplement other sales channels



Marketing Web Sites
engage consumers
in an interaction that will move them
closer to a direct purchase or other
marketing outcome


20

Designing Attractive Web Sites


The key is to create enough
value

and
excitement

to get
consumers to come to the site,
stick around, and come back
again


21

Content


Convey what the company is and what the
company has to
offer



Project
brand image


Easy to
navigate


Attractive


Have a “
contact us
” page


Ask permission to send information on
specials


Able to
purchase

products online

22

Website Design Considerations (1)


Contain useful, interesting information for
target customers


Facilitate self
-
service in information
gathering


Users
friendly


Firms must set explicit communication goals
for websites


23

Website Design Considerations (2)


Design should address attributes that affect
website “
stickiness



Content quality


Speed of download


Frequency of update


Memorable web address helps attract
visitors to a site


Ensure that people are aware of/can guess
firm’s web address

24

EasyJet Paints Its Website Address on

Each of Its More than 200 Aircraft

25

Effective Advertising on Internet
:

Banner Advertising (1)


Placing advertising banners and buttons on
portals such as Yahoo!, Netscape and other firms’
websites


Draw online traffic to the advertiser’s own site


Websites often include advertisements of other
related, but non
-
competing services


Advertisements for financial service providers on
Yahoo!’s stock quotes page


Small messages from Amazon.com on web pages
devoted to a specific topic


Links relevant to e
-
mail content on GMail


26

Effective Advertising on Internet:

Banner Advertising
(2)


Easy for advertisers to measure how many visits
to its own website are generated by click
-
throughs



Limitations


Obtaining many exposures “eyeballs” to a banner
does not necessarily lead to increase in awareness,
preference, or sales


Problem of fraudulent click
-
throughs

designed to
boost apparent effectiveness

27

Effective Advertising on Internet:

Search Engine Advertising

(1)


Reverse broadcast network

search engines let
advertisers know exactly what consumer wants through
their keyword search


Can
target relevant messages
directly to desired
consumers


Several advertising options


Pay for targeted placement of ads to relevant keyword
searches


Sponsor a short text message with a click
-
through link


Buy top rankings in the display of search results


28

Effective Advertising on Internet:

Search Engine Advertising
(2)


Google


The New Online Marketing Powerhouse


Google
AdWords

-

allows businesses to connect
with potential customers at the precise moment
when they are looking at related topics;
advertisers can display their ads at websites
that are part of the Google content network


Google AdSense
-

In return for displaying
relevant Google ads on their websites,
publishers receive a share of advertising
revenue generated

29

Internet Marketing Offers Powerful Opportunities for
Interactivity (1)


Internet used for a variety of communications
tasks


Promoting consumer awareness


Providing information and consultation


Facilitating two
-
way communications


Enabling customers to place orders


Can market through firm’s own websites or
advertise on other sites


Supplement conventional communications channels
at reasonable cost

30

Internet Marketing Offers Powerful Opportunities for
Interactivity (2)


Must be part of integrated, well
-
designed
communications strategy


Able to establish
harmony
with individual customers


Interactive nature of the Internet can increase
customer involvement


Facilitates
permission marketing
and “self
-
service”
marketing


Banks allow customers to pay bills electronically,
apply for loans over the Internet, and check
account balances online


31

Legal and Ethical Issues


Online Privacy and Security


Online
privacy

is perhaps the
number
-
one e
-
commerce concern


Identification
theft

and commercial
espionage

are security fears of
consumers and companies alike

32

Marketing Database System


A marketing database is an organized
collection of data about individual
customers, prospects, or suspects that is
accessible

and
actionable

for such
marketing purposes as lead generation,
lead qualification, sale of a product or
service, or maintenance of customer
relationships


33

Using a Database to Create a
Competitive Advantage


Provide the guest with a better experience


If on a prior visit a guest requests a certain
type of mineral water, the mineral water is
placed in the guest’s refrigerator on
returning visits


If a guest had a problem, all departments
in the hotel are notified, and everyone
works to regain the guest’s confidence and
loyalty


34

Direct Marketing


Direct marketing

is an interactive
system of marketing that uses one or
more advertising media to affect a
measurable response
and/or
transaction at any location


35

Reasons for Growth of Direct
Marketing


Precision targeting


Personalization



Privacy



Immediate results


Measurability


36

E
-
mail


The greeting should be
personalized

and
other persons being sent the same message
should not be listed


The
name

of the company should be
identified



The subject needs to be
relevant

to the
reader



E
-
mails need to be
short



Text message is the preferred
format


37

Direct Marketing Builds Relationships


Direct marketing allows companies to
develop a
strong relationship
with their
customers, which helps prevent them
from switching to competitors


It costs four to seven times as much to
bring in a new customer as it does to
maintain an existing one


38

Integrated Direct Marketing


A more powerful approach: execute a
multiple
-
vehicle, multiple
-
stage campaign


Paid Ad
with a
Response
Channel


Direct

Mail

Mechanism


Outbound

Tele
-

marketing

Face
-
to
-
Face
Sales Call

39

Discussion Questions


Go to two internet sites for the same
type of tourism organisation (
Hotel,
Airline, Destination marketing
organisation, Restaurant, Travel Agency,
Tour Operator or Theme park
like
Disneyland
).


Based on the information provided so far
in this lecture, critique the web sites.

40


End of Chapter
Slides

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