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Internet Marketing Concepts

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Objectives

• The new communication medium

• The Internet and the marketing mix

• Key elements of effective web site designs

• Internet marketing versus conventional

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The Internet as a New

Communication Medium

• Digital, interactive, and a greater depth of

information can be published

• Demographics may be different

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The Digital Medium of the

Internet

• Predominantly a pull medium

• Enables interaction

• Potential for one-to-one or many-to-many

communication

• The medium changes the nature of

advertising

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Communication Using the

Internet

Internet Medium

O

C

1

C

5

O

C

4

C

2

O

O

C

3

O

Con

tent

M

C

on

ten

_t

_M

Co

nte

nt

M

Conte

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The Communication Model

N O I S E

Source

(web site)

Message encoding

Receiver

(web browser)

Message decoding

Site content or e-mail

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Cultural Difference

• Uses of the Internet in the UK (1998) includes:

– Sending email (72 %)

– Research (63%)

– Education (58%)

– Seeking information on products and services (53%)

– Hobbies and interests (53%)

– Games playing (32%)

– Planning holidays (24%)

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In Europe and the USA

• Average age of user is 35.7 years old

• 38.5 % female and 61.5% male (22%, 72%

Europe)

• 65% access the Web from home (29% Europe)

• Average household income $53,000

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Cultural Difference

• Techno_lusters – focused in the culture and technology

• Academic buffs – originally on of the main types of users

• Techno-boffins – similar to the techno-lusters, but make more directed

use of the technology for business

• Get aheads – use the Internet as a lifestyle accessory, use email and

Internet for product selection

• Hobbyists – people with specialist interests who use the Internet for

purchase selection (golfers…)

• Knowledge traders – business oriented users who turn to the Internet

for news services and information on best business practice

• Business bods – general business users in management roles

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Internet and Marketing Mix

<b>Product</b>
• Quality
• Image
• Branding
• Features
• Variants
• Mix
• Support
• Customer
service
• Use
occasion
• Availability
• Warranties

Using the Internet to vary the marketing mix

<b>Price</b>
• Positioning
• List
• Discounts
• Credit
• Payment
methods
• Free or

value-added
elements
<b>Promotion</b>
• Marketing
communica
tions
• Personal
promotion
• Sales
promotion
• PR
• Branding
• Direct
marketing
<b>Processes</b>
• Customer
focus
•
Business-led
•
IT-supported
• Design
features
• Research
and
developme
nt
<b>People</b>

• Individuals
on
marketing
activities
• Individuals
on customer
contact
• Recruitment
• Culture/ima
ge

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The buying Process on the Internet

Stages in

buying process Communications_objectives

Internet marketing
techniques

1. Unaware
2. Aware of
product need,
develop
specification
3. Suppliers
search

4. Evaluate and
select

5. Purchase
6. Post-purchase

Generate awareness

Lead generation
(from range of
customers)
Assist
purchase
decision
Facilitate purchase
Position Features,
benefits and brands

Banner advertising,
PR, links

Web site content
(Plus search support)

Search engines,
Intermediaries
Web site content,
Intermediaries
Web site content

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Key Elements of Effective Web Site

Design

• Capture

• Content

• Community

• Commerce

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Alternative Factors

• Attract users

• Engage users’ interest and participation

• Retain users and ensure that they return to

the site

• Learn about customer preference

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Internet Marketing vs

Conventional Marketing

• It is a many-to-many medium

• Consumers can interact with the medium

• Consumers can provide commercially

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