Internet Marketing

Internet Marketing: Satisfying Customers On-line Rybachuk Anya Business Administration & Economics Department CITY Liberal Studies Affiliated Institution of Sheffield University Presentation Outline:  This Market is too big to be ignored!  Transition from the Marketplace to the Marketspace  New Rules of Marketing  What is Internet Marketing?  Traditional vs Internet Marketing  Problems and Pitfalls  Conclusions Question1: How many of us have used Internet for purchasing a product or service on-line? Facts about doing business on the Internet (B2C) Facts about doing business on the Internet (B2B) Question2: Is doing business on the Internet the same with doing business off-line?    It aims to be the most customer-focused company ever: both on-line and off-line. It created ultrapersonilized stores. It provides customers with the access to the world’s largest community of experienced online shoppers through auction. (Business Week, 1998) … but most importantly its appearance forced a whole industry to change FROM THE MARKETPLACE TO THE MARKETSPACE Advantages of the Marketspace        DIRECT CONTACT HIGH SPEED GREAT VARIETY USE OF MULTIMEDIA ACCESSIBLE 24 HOURS… …FROM AROUND THE WORLD!!! LOW COST New Rules for Internet marketing      Power shift from sellers to buyers Increasing velocity Death of distance Global reach Time compression      Knowledge management is key Market deconstruction Interoperability Interdisciplinary focus Intellectual capital rules (Strauss and Frost, 2000) Definition of Internet Marketing Internet Marketing is the application of the Internet and related digital technologies to achieve marketing objectives (Chaffey, 2000) Traditional vs. Internet Marketing Old Media Mass marketing Monologue Branding Supply side thinking Customer as a target Segmentation New Media Individualised marketing or mass-customisation Dialogue Communication Demand side thinking Customer as a partner Communities 1:M communication model 1:1 model Components of the Marketing Mix (4 Ps)  PRODUCT  PRICE  PROMOTION  PLACE STATEMENT No.1 “If I’m selling to you, I speak your language. If I am buying, dann mussen Sie Deutsch sprechen (then you must speak German).” -Will Brandt, ex-Chancellor, Germany Problems of Internet Marketing        Transmission time; Site congestion; Lack of organisation; Lack of security; Global differences; Customer is in charge; Time of visit. (Evans and King, 1999) Pitfalls of Internet marketing         Traditional vs. Internet Marketing techniques; Bad news travel quickly; Difficulties with identifying the market; Not many words; Not paying attention; Poor structure; Dishonesty; Channel conflict. (Levinson and Rubin, 1995) Conclusions (1):  The number of people and companies doing transactions on the Internet is dramatically increasing; No company should ignore the power of Internet in doing business… …but doing business in the Marketspace is different from the marketplace;   Conclusions (2):  So Internet Marketing is here to provide companies with the way to achieve a desired level of customer satisfaction; Internet Marketing is not a solution by itself. Companies must be creative, innovative and effective enough in order to avoid Internet marketing problems and seize its opportunities. 