Internet Marketing by ramhood17

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									 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 on-
    line 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         Knowledge management
    sellers to buyers         is key
   Increasing velocity      Market deconstruction
   Death of distance        Interoperability
   Global reach             Interdisciplinary focus
   Time compression         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              New Media
1:M communication model 1:1 model
Mass marketing          Individualised marketing
                        or mass-customisation
Monologue               Dialogue
Branding                Communication
Supply side thinking    Demand side thinking
Customer as a target    Customer as a partner
Segmentation            Communities
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.

								
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