Chapter Eighteen
Internet
Marketing
QuickTime™ and a
Sorenson Video 3 decompressor
are needed to see this picture.
Chapter Objectives
Identify the primary users of the
Internet.
 Discuss the functions and benefits
of Internet marketing.
 Examine Internet branding and
viral marketing.
 List the steps in developing an
Internet marketing strategy.

Internet Users


The Internet has impacted personal lives and how
business is conducted.
Every website category is growing, as more and
more people are using the Internet.
110.9
90%
88%
75%
80%
100
72%
67%
67%
70%
80
% Engaged in Activity
60
40
22
17.5
9.5
30%
9.2
20%
10%
W
ea
th
er
ve
l
Tr
a
ha
se
s
Pu
rc
ew
m
Active Home Internet
Users (Millions)
s
0%
N
U.S.
ap
s
Japan
M
Italy
at
io
n
Great
Britain
ai
l
Canada France Germany
In
fo
rm
0
Brazil
40%
ea
lth
7.5
9.5
53%
50%
H
20
26.6
56%
56%
60%
E-
Millions of Home Users
120
Internet Activities
(Within the Past 12 Months)
Functions of Internet Marketing






Projecting an image
Multi-channel marketing
E-commerce
Advertising
Sales promotions
Public relations
QuickTime™ and a
Sorenson Video 3 decompressor
are needed to see this picture.
Benefits of Internet Marketing





Sales
Interactivity
Multimedia
capabilities
Global reach
Flexibility





Cost efficiencies
Real time
Information
Communications
Database
warehousing
E-Commerce



Definition: Selling of goods & services over the Internet
Works for both the consumer and the B-to-B market
Has gone through three stages:
Bricks and Mortar




Traditional “preInternet” era
Firms that do not
engage in ecommerce at all
Small firms with
regional markets
Developed countries:
decreasing
percentage of total
firms
Clicks Only




Dot.com companies
that sell only over
the Internet
Have an office, but
no brick-andmortar store for
customers to go to
Huge burst in the
1990s
But recently have
faced some
problems
Bricks and Clicks



Firms that operate
both brick-andmortar stores and
Internet ecommerce site
The new face of
business
Provide customers
with a different
channel and more
product information.
E-Commerce Components
Catalog
Shopping Cart
Payment System
Store Locator
Why Consumers Shop Online










24-hour operation
Merchandise shipped to customer
Speed
More production information
Wide product variety
No salespeople
Ease of comparison shopping
No crowds
Saves time
Convenient
Ease
Selection
Prices
Concerns:
Security
Fulfillment*
How to Encourage Purchases

To
•
•
•
increase Internet sales, provide incentives:
Financial—reduced price, sales promotion, etc.
Convenience—speedy transaction anytime, anywhere
Value-Added—best incentive—interactive marketing
Internet Branding
• Brand spiraling: Use of media to promote an
online website
• Halo effect: Selling over Internet after
establishing strong off-line brand
Examples of Success: Adobe, Amazon, Graffiti
Discussion


Viral Marketing
Viral Marketing Case
Beer.com's
Virtual
Bartender
An advertisement tied to an email
Characteristics:
-Low cost, Rapid brand development, Greater credibility
-But will become less effective with time
Internet Marketing Strategy
B-to-B
Functions
Security
Objectives
Internet
Function
Target
Audience
Determine site functions:
Define the target
multi-channel
audience of the
marketing
website.
selling
Create objectives to
advertising and
match the
promotions
needs of the
target
public relations
audience.
database development
Foundation for the
information gathering
development of
and sharing
the website
inventory management
Affects the
functions and
sales support
the content of
customer service
the website
E-Commerce
Consumer
Functions
For firms and
manufacturers
that sell to
business, need
to define the Bto-B functions
Also: Consumer
functions
E-commerce may or
may not be
included in the
Internet
functions.
Website
Design
Assessment
Database
Development
Website Design
Meet the
functions
identified
Website
security
Database
development
Assessment of the
website
How well is the
firm meeting
its objectives
and
functions?
Should be a
continuous
process