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Need an account? Click here to sign up. Opt-in e-mail Direct marketing 7. Viral Marketing Public Relations Activity 1. Include communications using both the Internet and traditional media. Refer to channel-swapping alternatives in the buying decision in Figure 1.
The table below shows different forms of integration between the channels Table: Examples of communications initiated by customer and company Communication initiated by customer Communication initiated by Company Phone call to company Advert to generate awareness, placed in newspaper or PC magazine Visit to web site to review prices and specification Phone call or e-mail by courier company to arrange delivery of PC Phone call or e-commerce purchase of PC Traditional mail-out or e-mail after 1 year to describe upgrade service Support call to solve problem Traditional mail-out or e-mail after 3 years to describe new product offers Complaint about repair Call to arrange visit from sub-contracted company Exercises Self-assessment exercises 1.
Which measures can companies use to assess the significance of the Internet to their organisation? Reference to Chapters 2 and 3 may assist with this question. Why did companies only start to use the Internet widely for marketing in the s, given that it has been in existence for over 30 years? The recent dramatic growth in the use of the Internet has occurred because of the development of the World Wide Web.
The World Wide Web changed the Internet from a difficult-to-use tool for academics and technicians to an easy-to-use tool for finding information and delivering web applications for businesses and consumers. Distinguish between Internet marketing and e-marketing. The objectives of each are similar — to support marketing activities towards their goals, that is, customer acquisition and retention, and cost reduction.
E-marketing can be considered broader since it includes the additional media of interactive digital TV and mobile networks. Internet marketing refers to the web, e-mail and databases. Explain what is meant by electronic commerce and electronic business. How do they relate to the marketing function? E-commerce refers to transactions for the trading of goods and services conducted using the Internet and other digital media.
E-business is broader, including electronically mediated transactions, which are internal and with suppliers as well as those to buyers. They are both methods of supporting the marketing function — e-commerce refers to customer facing web sites, e-business also includes links with partners and suppliers through extranets and internal marketing communications through intranets.
What are the main differences and similarities between the Internet, intranets and extranets? Internet is available to all; others are restricted to those inside a company intranet and favoured third parties such as large customers, suppliers and distributors extranet. Summarise the differences between the Internet and traditional media, using the 6 Is. Information can be collected from customers via web pages direct response. How is the Internet used to develop new markets and penetrate existing markets?
What types of new products can be delivered by the Internet? Fulfilment methods must enable delivery with minimal need for local servicing. The Internet may give opportunities for new market segments such as the youth market that may have been difficult to target previously. For existing markets, the Internet can be used to increase awareness, and add value to a company and its products. The Internet is primarily thought of as a means of advertising and selling products. What are the opportunities for the use of the Internet in other marketing functions?
Prompt students by considering the 4 different types of sites mentioned on pages 14 to Refer students to the 6 Is, some of which describe differences in traditional and digital media.
This is also discussed in more detail at the start of Chapter 8 where different communication models are referred to. The text covers the stresses, the pull nature of the medium, for example, where a consumer uses a search engine to find a product, but the question is intended to highlight the options for push such as personalised e-mail promotion, targeted messages on web sites and banner advertising Chapter 8.
You are a newly installed marketing manager in a company selling products in the business-to-business sector. Currently, the company only has a limited website containing electronic versions of its brochures. You want to convince the directors, of the benefits, of investing in the website to provide more benefits to the company.
How would you present your case? The framework presented in Figure 1. The directors will be interested mainly in generating new enquiries. Explain the main benefits that a company selling fast-moving consumer goods could derive by creating a website. The intention of this question is to highlight that the web is not suitable for selling all products. But digital media may be used for generating awareness and brand building.
This can be achieved through banner advertising on third party sites. For example, www. The case study at the end of Chapter 8 features examples of different FMCG companies; this may provide some inspiration in terms of the benefits of engaging directly with customers, which has been less readily possible with other media. This engagement can occur through micro sites hosted by publishers or by the brand. Consumers can be encouraged to opt-into e- newsletters or get involved in SMS promotions.
Examination questions 1. Contrast electronic commerce with electronic business. Both involve financial and informational electronic transactions. E-commerce transactions are related to selling and B2B purchases. E-business includes these, but also refers to internal marketing and business partner communications. Internet technology is used by companies in three main contexts. Distinguish between the following types and explain their significance to marketers: a intranet b extranet c Internet.
Internet available to all, others restricted to those inside a company intranet and favoured third parties such as large customers, suppliers and distributors extranet. An Internet marketing manager must seek to control and accommodate all the main methods by which consumers may visit a company website.
Describe these methods. Although these are introduced in this chapter, Figure 1. Imagine you are explaining the difference between the World Wide Web and the Internet to a marketing manager. How would you explain these two terms? The Internet is the network or the physical media such as wires that are used to deliver the information while the World Wide Web is the published information that is, read by those accessing it.
The Internet is the equivalent of a TV transmitter and the World Wide Web is equivalent to the programmes on the channels. Conversion marketing is the monitoring of the hierarchy of response to marketing communications. Assessing and improving response rates can achieve more online sales. For example, we can increase the reach of the site to turn more web browsers into visitors; we can increase the conversion rate of the site to encourage more site visitors to achieve action and we can increase conversion of leads to sales to increase turnover.
Explain how the Internet can be used to increase market penetration in existing markets and develop new markets? To increase penetration in existing markets, the Internet can be used to reach a greater proportion of the target market within an existing country or marketplace. It can also, in combination with other communication channels, be used to assist in converting more potential customers to sale. To develop new markets, the Internet can be used not only to reach new geographical markets, but also to enter new markets.
For example, supermarket Tesco. This is introduced in Chapter 1, but covered in more detail on pp. Case study 1. Students should be guided as to whether they review the whole eBay business or the core business the marketplace. It is best to divide this question into two parts. A suitable framework for reviewing the unique aspects of digital media is Table 1. The particular characteristics of digital media compared to traditional media that are important to eBay are straightforward.
How strategic decisions have supported growth. As with other cases based on SEC filings, that is, United States Securities And Exchange Commission submission, this case is useful for showing how growth is dependent not only on exploiting the right opportunities, but also about managing risks successfully.
Students may structure strategic decisions in different ways according to the level of the course they are following, but since the case is in the beginning of the book, they could be advised to simply look for success factors. Alternatively, if they have completed Chapters 4 and 5 on Strategy and the Marketing mix respectively, these then provide alternative frameworks.
Setting fees at the right level has enabled eBay to scale for some time. Notes on using slides for the second chapter in lectures — lesson plan 1. The scope of the micro-environment. Slide 4. Ask students to imagine they are an e-marketing manager for an international brand like 3M or Durex.
What are the micro and macro issues they face from Figure 2. Which are the most important? Marketplace analysis. Slides 5—6. Talk through the online marketplace map diagram Figure 2. Stress integration with offline channels channel chains later. Customer analysis and consumer behaviour. Conversion modeling advanced. Explain the need to assess demand for use of different services and then to create a conversion funnel model. Evaluation of demand levels.
Slides 11— Structure around 3 levels of access: Influence: Transact as shown in Slide Ask different groups of students in a class to analyse main findings from graphs and implications. Customer characteristics. Covers consumer and business characteristics. Consumer buyer behaviour models. Slides 26— Review strengths and weaknesses of each model. Slides 34— Ask students to review benchmarking criteria for different site types introduced in Chapter 1.
Brief section since covered in later chapters, for example, Chapters 4, 5 and 6. Slides 36—9. Ask students to identify different types of intermediaries or portals. Different types of intermediaries were introduced earlier in the chapter in the section on marketplace analysis. Best to introduce in context of business and revenue models which are covered in the next section. Intermediary models. Slides 40— Covers value chain analysis, disintermediation, reintermediation and countermediation.
Business and revenue models. Slides 51— Alternatives reviewed in Slide What do you think are its main weaknesses? We would suggest: Answer provided in book Limitations with traditional model in new Web 2. Activity 2. Visit the Kelkoo web site www. Explain the service that is being offered to customers. It provides a way for searching for and reviewing individual products to identify the most appropriate product and potential suppliers compared on the basis of price. Write down the different revenue opportunities for this site some may be evident from the site, but others may not ; write down your ideas also.
Given that there may be other competing sites in this intermediary category such as Shopsmart www. This business is now profitable in several European markets. Confirming its position as a leading pan-European e-commerce operator, Kelkoo now attracts over 2. Across the eight European markets where it operates, Kelkoo sends 3.
This gives the top 10 most popular sites in the countries listed. You will see that the largest portals such as MSN and Google can be used to reach over 50 per cent of the Internet audience in a country. The pattern of top sites is different in each country, so international marketers need to ensure that they are equally visible in different countries. Answer No answer is provided since it links through, as activity simply points readers at an example information source for their country.
Top sites are indicated together with variations in user media consumption in the different countries. Assessing the impact of the Internet on competitive forces in different industries Purpose To assess, how some of the changes to the competitive forces, caused by electronic communications impact particular industries. Activity Referring to Table 2. State which you feel are the most significant impacts. Banking 2.
Grocery retail 3. Book retail 4. B2B engineering component manufacturer 5. B2B software services company selling customer relationship management software 6. Not for profit organisation such as hospital, local government or charity. Suggested answer: Table 2. The main forces to debate are the shift in power between the bargaining power of buyers and suppliers.
This enables products to be compared more readily. Purpose To illustrate the range of revenue generating opportunities for a company operating as an Internet pure-play. Activity Visit one of the local Yahoo! Shopping Subscription revenue for access to services such as Yahoo! This activity shows how ad-based revenue models are calculated and indicates the amount of revenue generated by looking at three alternative approaches for publishing referencing three different types of portal.
Question Visit each of the sites in this category. You should: 1. Summarise the revenue models which are used for each site by looking at the information for advertisers and affiliates. E-consultancy www. The site has limited advertising on a fixed monthly term basis.
It does not have subscription. Marketing Sherpa www. Surprisingly, it has limited advertising, so as not to annoy site visitors. Some of its reports are syndicated from other online sources, so this is a commission-based model. What are the advantages and disadvantages of the different revenue models for the site audience and the site owner?
This answer can be broken down by the different revenue models as shown in the table below. Given the advantages and disadvantages of each, it makes sense to have several models to maximise monetisation of site visitors. Reports often more specialised and more immediate than books.
Difficult to provide sufficiently compelling unique content that is not already freely available on the web. Advertising Relatively easy to setup, particularly if an established programme like Google AdSense where no advertisers have to be recruited. Advertisers have to be recruited and payments managed. If this fails, then online ad inventory may be unsold and so wasted. Affiliate Individual transactions can be significant value.
Difficult to recruit affiliates and work best with high volume consumer markets rather than business markets.
Revenue only generated if sale is made. A cost per click arrangement is better for publisher. Given an equivalent audience, which of these sites do you think would generate the most revenue? You could develop a simple spreadsheet model based on the following figures Monthly site visitors: ,, 0. Subscribers to weekly newsletter: 50, Why is environmental scanning necessary? At the macro-level, it is important to understand new constraints such as legal and technical constraints on conducting business.
These may also present opportunities. Summarise how each of the micro-environment factors may directly drive the content and services provided by a web site. What are the main aspects of customer adoption of the Internet that managers should be aware of?
What are the main changes to channel structures that are facilitated through the Internet? What are the different elements and different types of business models? This is referred to in Figure 2. How should a marketing manager benchmark the online performance of competitors? Available from About Us, Investor relations and electronic copies of company reports. This information is also available from intermediary sites such as finance information or share dealing sites such as Interactive Trader International www.
Marketshare and sales trends and significantly the proportion of sales achieved through the Internet. This may not be available directly on the web site, but may need to use other online sources. For example, new entrant to European aviation easyJet www. Do these differ from other marketplace players? Is the customer value proposition of the site clear? Does the site support all stages of the buying decision from customers who are unfamiliar with the company through to existing customers?
Are special promotions used on a monthly or periodic basis? What is offered beyond brochureware? Is online purchase possible? What is the level of online customer support and how much technical information is available?
These are the practical features of site design that are described in Chapter 7 such as aesthetics, ease of use, personalisation, navigation and speed.
A variety of alternative approaches to benchmarking are possible. Different frameworks can be identified to help group criteria for benchmarking. Alternatives include the following: 1. E-CRM egg. Customer journeys. Marketing mix — develop a detailed version of this. Problem — this is not user-centred — but the E-CRM egg is. Describe two different models of online buyer behaviour. Behavioural traits for example, Lewis and Lewis identified five different types of web users: Lewis, H and Lewis, R.
Give your customers what they want. Selling on the Net. Executive book summaries, Vol 19, No 3. Breitenbach, C. Journal of consumer marketing. Vol 15, No 6. How can the Internet be used to support the different stages of the buying process? See the Breitenbach and van Doren, reference details given in the previous question. Essentially, online and off-line promotion techniques described in Chapter 8 are used to raise awareness of the company and its web site, and the content and services on the web site then help users in selecting products.
A web site can provide more depth of information than other media and also interactive tools to help users select the best service for them. For example, a cell-phone company could give a series of questions that suggest to customers the best tariff for them. Essay and discussion questions 1. Discuss, using examples, how the Internet may change the five competitive forces of Michael Porter.
This is summarised in Table 2. Reference to the paper by Porter is essential to answer this question. Suggested approach: data sources referenced in the Chapter suggest that only in developed countries will the level of access be high.
In most countries, for the foreseeable future, it appears that access levels will be less than 50 per cent in terms of PC access.
Further into the future access through digital TV via satellite and mobile access may increase this figure. However, the access figure is now approaching 50 per cent in some developed countries although PC access saturation is approaching. What are the options, for an existing organisation, for using new business models through the Internet? Look at attacking new markets and developing new products — Figure 4.
Look at new methods of revenue generation, particularly through creating or partnering with an intermediary. Perform a demand analysis for e-commerce services for a product sector and geographical market of your choice. This involves assessing the ratio Access: Influence: Buy in a country using data sources referenced at the end of this chapter.
The weblogs for analyst Hitwise are particularly useful if you search on a particularly creative site. Dave is really paving the way to the future of the e-marketing body of knowledge.
Using a systematic approach, He is really paving the way to the future of the e-marketing body of knowledge. Dave Chaffey www. He is a lecturer on e-marketing courses at Cranfield and Warwick universities and the Institute of Direct Marketing.
Dave has been recognised by the CIM as one of the 50 marketing 'gurus' worldwide who have shaped the future of marketing. Convert currency. Add to Basket. Book Description Condition: new.
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